Strong real estate, retail operations drive SMIC Q1 earnings up to P8.5B
SM Investments Corp. (SMIC) booked a 10 percent growth in its first quarter profit to P8.5 billion on higher earnings from its property and retail units.
Consolidated revenues reached P95 billion, up 11 percent year on year.
“We continue to build on our strong 2017 performance with revenues rising faster in the first quarter this year. Looking ahead we remain cautiously optimistic about underlying consumption trends despite inflationary pressures,” said SM president Frederic C. DyBuncio.
Property accounted for 46 percent of SM’s consolidated net income, followed by banks at 32 percent and retail 22 percent.
Property arm SM Prime Holdings Inc. saw a 15 percent growth in net income to P7.6 billion.
SM Retail Inc., which consists of both food (SM Markets) and non-food (The SM Store and Specialty Retail), grew its net income by 10 percent to P2.6 billion on the back of a 10 percent jump in sales to P67.4 billion
It ended the first quarter with a total of 2,081 stores comprising 59 SM Stores, 1,283 specialty retail stores, 53 SM Supermarkets, 47 SM Hypermarkets, 186 Savemore, 46 WalterMart and 407 Alfamart stores.
Banking arm BDO Universal, on the other hand, posted flat earnings at P5.9 billion largely due to higher operational costs brought about by the newly implemented tax reform package which raised the documentary stamp tax.