SM Investments Corporation records 12% growth in recurring net income in the first quarter of 2016

Pasay City, Philippines, 2016-May-04 — /EPR Retail News/ — SM Investments Corporation (SM) posted a 12% growth in recurring net income in the first quarter of 2016. Consolidated net income (including non-recurring items) stood at PHP 7.0 billion for the January to March period, up 3.6% from PHP 6.7 billion in the same period last year. Consolidated revenues grew 7% to PHP 69.8 billion for the first quarter.

“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 efficiency in all our businesses have also helped ensure solid earnings growth,” SM President  said.
For the first quarter, property accounted for 43% of SM’s consolidated net income, followed by banks at 36% and retail at 21%.

Retail
Retail operations under SM Retail Inc., which consist of both food (SM Markets) and non-food (THE SM STORE), reported sustained growth in total sales of 8% to PHP 48.8 billion in the first quarter, while net income rose 16% to PHP 1.5 billion.

SM’s food retail business continued to expand, adding five new stores. At end-March, SM Retail had a total of 314 stores comprising 53 THE SM STOREs, 45 SM Supermarkets, 44 SM Hypermarkets, 140 Savemore and 32 WalterMart stores.

Following their acquisition last year and recent modernization, two Cherry Foodarama grocery stores are now fully operational inside SM Cherry malls in Shaw and Congressional Avenue.

SM earlier announced the merger of SM Retail with a group of specialty retail stores such as Ace Hardware, SM Appliance Center, Homeworld, Our Home, Toy Kingdom, Watsons, Kultura, Baby Company and Sports Central. The combined entity will have over 1,900 outlets and 2.4 million sqm of gross floor area.

Banking
For the first quarter of 2016, BDO Unibank posted a net income of P 5.5 billion as core lending, deposit-taking and fee-generating businesses delivered solid numbers. Net Interest Income grew by 17% to P 15.5 billion, supported by the 15% jump in customer loans to PHP 1.3 trillion and a 14% growth in deposits to PHP 1.7 trillion.

Property
SM Prime Holdings, Inc. (SM Prime) reported a recurring net income growth of 12% in the first quarter to PHP 5.8 billion. Consolidated revenues rose 10% to PHP 18.2 billion.

Rental revenues from malls and commercial spaces, which accounted for 59% of the total, grew 14% to PHP 10.8 billion.  On the other hand, total mall revenues rose 11% to PHP 11.0 billion from PHP 9.9 billion in the previous year. Excluding the new malls and expansions, same-store growth averaged 7%. Total revenues from the commercial group registered a 16% growth in revenues to PHP 887.2 million.

SM Prime’s residential group, which accounted for 32% of total revenues, recorded higher revenues by 5% to PHP 5.8 billion in the period largely on higher construction accomplishments of SM Development Corporation (SMDC) projects launched in 2013 to 2015.
The hotels and convention centers business grew by 22% in the first quarter of 2016 to PHP 617.2 million in terms of revenues.

Balance Sheet
As of end-March, total assets of SM grew 6% to PHP 760.5 billion. SM maintains a healthy balance sheet with a conservative gearing ratio of 36% net debt to 64% equity.

About SM Investments Corporation
SM Investments Corporation, founded by entrepreneur Henry Sy, Sr., is one of the country’s largest publicly listed companies with a sustainable group of businesses that thrives on synergies of its banking, property and retail operations. SM has grown into one of the most highly respected companies in the country owing to its progressive approach in business and its comprehensive sustainability programs for its host communities through SM Foundation and SM Cares.

SM’s retail operations enjoy a strong brand franchise consisting of non-food under THE SM STORE and food under SM Markets comprising of SM Supermarket, SM Hypermarket, and Savemore and other food retail stores under Waltermart and Alfamart. SM’s property arm, SM Prime Holdings, Inc., is the largest integrated property developer in the Philippines with interests in malls, residences, offices, hotels and convention centers as well as tourism-related property developments. SM’s interests in banking are in BDO Unibank, Inc. (BDO), the country’s largest bank and China Banking Corporation (China Bank),  the seventh largest bank.

For more about SM, click here: www.sminvestments.com

Contact:

Ms. Corazon P. Guidote
Senior Vice President for Investor Relations
SM Investments Corporation
E-mail: cora.guidote@sminvestments.com
Tel. No. (632) 857-0117

Source: SM