Conglomerate SM Investments Corp. of retail tycoon Henry Sy booked a net income of P22 billion in the first nine months of 2016, up 11 percent year-on-year on solid contributions from the property, banking and retail businesses.
SM Investments said in a disclosure to the stock exchange nine-month consolidated revenues rose 9 percent to P252.4 billion from P230.8 billion a year ago.
“Our core businesses are delivering solid growth in line with the investments we have made and against a background of stable economic fundamentals,” SM president Harley Sy said.
“We are also encouraged by the performance of the recently merged specialty retail stores which delivered double digit top-line growth. The intention of the government program to invest heavily in nationwide infrastructure projects should help economic development and drive provincial growth outside Metro Manila which is where we are also directing our investments,” Sy added.
The bank and property businesses each accounted for 39 percent of the consolidated earnings in the nine-month period, while retail contributed another 22 percent.
The group’s retail business under SM Retail Inc. reported sustained growth in total sales, increasing 9 percent to P186 billion. Nt income grew 7 percent to P7 billion.
Revenues from recently acquired specialty retailers rose 13 percent.
SM Retail’s total gross selling areas of all 55 department stores as of end September 2016 stood at 700,000 square meters after it recently opened two outlets in SM San Jose del Monte in Bulacan and in SM Trece Martires in Cavite.
The food retail group added 15 mid-sized format Savemore stores, two SM Supermarkets, one SM Hypermarket and three WalterMart stores for a total of 277 stores.
Meanwhile, Alfamart increased its number of stores to 187 as of end-September from 99 at the start of the year.
SM Investments banking units BDO Unibank Inc and China Banking Corp. reported positive earnings in the first three quarters of the year.
BDO Unibank posted a 10 percent hike in net income to P19.3 billion as its lending, deposit-taking and fee-based businesses all delivered solid results.
China Bank reported a net income growth of 31 percent to P4.8 billion in the first nine months due to strong growth in core and fee-based businesses.
The conglomerate’s property unit SM Prime Holdings posted a recurring net income growth of 13 percent in the first nine months to P17.5 billion, driven by growth in leasing and property sales. Consolidated revenues rose 11 percent to P57.8 billion.