SM 9-month profit hits P33.1 billion

Conglomerate SM Investments Corporation (SM) booked a 26-percent increase in net income in the first nine months of the year, driven mainly by banking and property businesses.

In a statement, SM said its consolidated net income reached PHP33.1 billion from January to September, up from the PHP26.2 billion during the same period last year.

Consolidated revenues also rose 14 percent to PHP350.7 billion from PHP307.4 billion year-on-year.

“Our core businesses continue to deliver notable performance led by banking and property. We are satisfied with our financial results as these reflect the continued growth in our core businesses,” SM President Frederic DyBuncio said.

For the period year-to-date ending September, banks accounted for 44 percent of SM’s reported net earnings, followed by property at 39 percent, and retail at 17 percent.

Retail operations under SM Retail Inc., which consist of food (SM Markets) and non-food (THE SM STORE and Specialty Retail), reported growth in total revenues by 12 percent to PHP253.9 billion, while net income declined slightly by 1 percent to PHP7.8 billion.

By end-September 2019, SM Retail had a total of 2,693 stores comprising 64 The SM STOREs, 1,565 specialty retail stores, 58 SM Supermarkets, 51 SM Hypermarkets, 199 Savemores, 56 WalterMarts and 700 Alfamart stores. SM Prime Holdings, Inc. (SM Prime) reported consolidated net income growth of 18 percent to PHP27.6 billion and consolidated revenues rose 14 percent to PHP85 billion.

Net income of BDO Unibank grew 49 percent to PHP32.1 billion, as net interest income rose to PHP88.5 billion on increase in customer loans and total deposits. China Banking Corporation reported consolidated net income rose 21 percent to PHP6.7 billion.

In August 2019, SM joined the United Nations Global Compact (UNGC) consisting of leading global companies to uphold the UNGC’s 10 Sustainability Principles. SM was also recognized by Forbes as one of the 250 best regarded companies in the world on its global 2000 list in September 2019.

In addition, SM was added as a member of the FTSE4Good index series in recognition of its strong Environment, Social and Governance (ESG) 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.