SMIC weathered rains; 9-mo profit up 6%
Sustained profit rise across all segments in the third quarter helped SM Investments Corp. (SMIC) remain profitable during the nine months ending September amid a period plagued by inclement weather.
In a disclosure on Wednesday, the Sy-led conglomerate said its net income amounted to P64.4 billion, 6 percent higher year-on-year from P60.9 billion previously.
SMIC’s growth received a major contribution from the banking segment, accounting for half of nine-month earnings. This was followed by property at 28 percent, retail at 15 percent and portfolio investments at 7 percent.
Consolidated revenues also climbed by 4 percent to P482.3 billion from P462.5 billion in the year-ago period.
The retail segment saw a 4.7-percent decline in nine-month profit, with P12.2 billion compared to P12.8 billion last year. Still, retail revenues rose by 5 percent, with growth seen across product categories.
“The earlier school opening in June this year pushed some spending from the third to the second quarter. Despite this shift, specialty retail spending grew in the health and beauty, fashion and kids categories while essential spending continued to prop up growth for food retail,” said Frederic C. DyBuncio, president and CEO of SM Investments.
Department stores recorded a 3-percent revenue growth, driven by the fashion and kids categories.
Food retail revenues grew by 7 percent supported by a strong market base and store expansions.
Meanwhile, specialty retail revenues hiked 4 percent, propelled by the spending in kids and home categories.
The group’s banking arm, BDO Unibank Inc. saw its profit rise by 4 percent to P63.1 billion as gross customer loans and deposits grew.
China Banking Corp. reported a 10-percent jump in net income with P20.2 billion. This was driven by higher loan demand and interest income.
Real estate giant SM Prime Holdings Inc. earned P37.2 billion, up by 10 percent. This was driven by higher contributions from the mall and convention center segments.
SM Prime’s total revenue amounted to P103.4 billion, which was an increase of 4 percent.
Mall revenues grew by 7 percent to P61 billion amid additions to leasable space and tenants.
Hotels and convention centers registered a 6-percent rise in revenues. There were greater bookings for the meetings, incentives, conferences and exhibitions category.
“The third quarter performance remained within our expectations. Despite the challenges brought about by adverse weather and flooding, we continued to see resilient financial performance across our businesses,” DyBuncio said.
“While external factors may temper overall economic growth, we maintain an optimistic outlook as we move into the fourth quarter,” he added.
