Conglomerate SM Investments Corp. said Wednesday net income expanded by 27 percent in the first half to P23 billion from P18.1 billion in the same period last year on the back of double-digit growth in revenues.
SMIC said in a disclosure to the stock exchange the first-half consolidated revenues climbed 14 percent to P233.7 billion from P204.3 billion a year ago.
“We delivered a strong first half, underpinned by remarkable bank earnings and robust residential take-up. Our retail business continues to do well and we are pleased with the rapid expansion of our minimart footprint through Alfamart,” SMIC president and chief executive Frederic DyBuncio said.
The property and banking businesses accounted for 41 percent and 40 percent of the group’s net income while retail contributed 19 percent in the first half.
SM Retail posted a net income of P5.7 percent as revenues grew 13 percent to P169.8 billion. Excluding the adjustments with the adoption of the Philippine Financial Reporting Standards No.16, a new accounting standard for leases, retail net income grew 10 percent to P6.3 billion.
SM Retail had a total of 2,600 stores as of end-June, including 63 SM Stores, 1,548 specialty stores, 57 SM Supermarkets, 52 SM Hypermarkets, 197 Savemore stores, 55 WalterMart branches and 628 Alfamart outlets.
Property unit SM Prime Holdings Inc. earlier reported a net income of P19.3 billion in the first half of the year, up 16 percent from a year ago as consolidated revenues rose 15 percent to P5 billion.
BDO Unibank Inc. saw its net income increase to P20.2 billion in the first half from P13.13 billion in the same period last year on strong recurring earnings from core businesses, solid growth in fee income and normalization of trading and forex gains.
“Our performance reflects our commitment to sustainable operations and adherence to good corporate governance which has been affirmed by our recent inclusion in the FTSE4Good index,” DyBuncio said.
SMIC and SMPH were recently confirmed as parts of the FTSE4Good Index Series for their strong environmental, social and governance practices.
FTSE4Good is managed by FTSE Russell of the London Stock Exchange Group and is designed to identify companies that demonstrate strong ESG practices against globally recognized standards.