SM Recurring Net Income Grows 11%
Pasay–(PHStocks)– A growing economy and business expansion in all core businesses resulted in sustained revenue growth of 7.7% to PhP65.1 billion for SM Investments Corp. (PSE: SM) in the first quarter of 2015.
Consolidated net income for 2015 grew 8.1 percent to PhP6.7 billion, with net income margin at 10.4%. Excluding extraordinary items, recurring net income increased 11% on the same quarter year-on-year.
“We are focused on expanding all our core businesses given the favorable economic outlook. Our expansion plans are geared towards meeting the needs of underserved customers across the country and to positioning ourselves to compete effectively in each of our growing markets,” said SM President Harley T. Sy said.
Banks accounted for 41% of net income while property delivered 40% and retail contributed 19%.
Retail operations
Retail operations under SM Retail Inc. delivered sustained growth in total sales of 6.5% to PhP44.9 billion, while net income rose 6.5% to PhP1.3 billion. SM’s food retail business continued to expand in both urban and rural communities, adding 10 new stores in various parts of Luzon, Visayas and Mindanao.
At end March 2015, SM Retail had a total of 279 stores, comprising 50 THE SM STORES, 40 SM Supermarkets, 43 SM Hypermarkets, 120 Savemore stores and 26 WalterMart stores.
Banking
BDO Unibank Inc. (PSE: BDO) recorded net interest income growth of 9.3% in the January to March period to PhP13.3 billion, with net income of PhP6.1 billion in the first quarter up 12%.
Property
SM Prime Holdings Inc. (PSE: SMPH) registered revenues of PhP16.7 billion, an increase of 9% on the first quarter 2014. Net income of PhP12.6 billion was up 176% on the same period last year, including an extraordinary gain of PhP7.4 billion from the sale of marketable securities. Excluding the one-time gain, net income grew 14% to PhP5.2 billion in the first quarter of 2015.
Revenues from retail and commercial spaces grew 10% in the period to PhP9.4 billion.
The housing group recorded a 6.7% increase in real estate sales to PhP5.4 billion, with reservation sales increasing 34% to PhP9.5 billion.
Balance sheet
As of end-March 2015, total assets of SM grew 14% to PhP718.5 billion. SM maintains a healthy balance sheet with a conservative gearing ratio of 32% net debt to 68% equity.