Conglomerate SM Investments Corp. said net income in the first three months of the year climbed 3.6 percent to P7 billion from P6.7 billion year-on-year, boosted by strong consumer spending and the stable economic growth.
Minus non-recurring gains, SM Investments said net income would have increased by 12 percent in the first three months of the year.
SM Investments said in a disclosure to the stock exchange first quarter consolidated revenues rose seven percent to P69.8 billion
“We are pleased with SM’s strong underlying growth in the first quarter as consumer spending continued to be vibrant and sentiment about the Philippine economy remains strong. Our continuing efforts to improve efficiencies in all our businesses have also helped ensure solid earnings growth,” SM Investments president Harley Sy said.
Property accounted for 43 percent of the group’s consolidated net income in the first quarter, followed by banks at 36 percent and retail at 21 percent.
Retail operations under SM Retail Inc., which consist of both food and non-food, reported sustained growth with total sales rising eight percent to P48.8 billion in the first quarter, while net income increased 16 percent to P1.5 billion.
The conglomerate’s food retail business continued to expand, adding five new stores to end the quarter with 314 stores
SM earlier announced the merger of SM Retail with a group of specialty retail stores. The combined entity will have over 1,900 outlets and 2.4 million square meters of gross floor area.
Meanwhile, the SM Investments’ banking unit BDO Unibank posted a net income of P5.5 billion as core lending, deposit-taking and fee-generating businesses delivered solid numbers.
The group’s property arm SM Prime Holdings Inc. booked a recurring net income growth of 12 percent to P5.8 billion while consolidated revenues rose 10 percent to P18.2 billion.
Rental revenues from malls and commercial spaces went up 14 percent to P10.8 billion, while the residential group recorded a five-percent increase in revenues to P5.8 billion
Total assets of SM Investments as of end-March improved six percent to P760.5 billion.
Shareholders of SM Investments last week approved the increase in the company’s authorized capital stock to P28 billion from P12 billion to pave the way for a stock dividend declaration and obtain flexibility for future expansion.