Thursday, March 1, 2018

SMIC credits expansion, economy for 6% net-income growth in 2017

SM Investments Corp. (SMIC) credited expansion of the economy and of the business for the 6-percent net-income growth the company recorded last year.

SMIC on Wednesday said its net income grew to P32.9 billion in 2017, from P31.2 billion in 2016. Consolidated revenues rose 9 percent to P396.1 billion, from P363.4 billion in 2016.

“Our core businesses continued to deliver strong results in 2017 with recurring net-income growth of 9 percent, driven by overall growth in the economy and our nationwide expansion plans. Our property and specialty retail businesses delivered particularly strong results,” SMIC President Frederic C. DyBuncio said. “During the year SM made substantial investments in its banks and in new business opportunities, which we expect to contribute to higher earnings growth in future years.”

Property accounted for 40 percent of total earnings, with banks comprising 38 percent and retail at 22 percent.

Operations under SM Retail Inc., which consist of nonfood, such as the department stores and specialty stores, and food stores, reported total revenues growth of 7 percent to P297.4 billion, while net income stood at P10.4 billion.

“The underlying performance of our retail operations remained good, led by strong growth in our higher margin specialty retailing and with the addition of the successful Miniso variety store chain during the year,” DyBuncio said.

The food group, which includes supermarket, hypermarket and the Savemore and WalterMart brands, continued to expand mostly in provincial areas in 2017. The group added 42 new stores, most of which are stand-alone Savemore stores. SM’s food group continues to expand in various regions of the country with a multiformat growth strategy to address the lack of organized retail.

At end-December 2017, SM Retail had a total of 2,032 outlets, comprising 59 department stores, 1,299 specialty retail outlets, 52 supermarkets, 47 hypermarkets, 181 Savemore, 46 WalterMart and 348 Alfamart stores. A total of 341 outlets were added in 2017 across the retail business portfolio.

SM Prime Holdings Inc. reported its recurring net-income growth of 16 percent in 2017 to P27.6 billion, driven by the increase in rental revenue from malls, as well as the strong sales take-up of housing units.

Lender BDO Unibank Inc. posted a net income of P28.1 billion in 2017. Net-interest income grew by 25 percent to P81.8 billion, driven by the 18-percent growth in gross customer loans to P1.8 trillion.

China Banking Corp. (China Bank), meanwhile, reported net-income growth of 15 percent to P7.4 billion in 2017, on the back of sustained growth in core and fee-based businesses.

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