Advertisement

SM Group plans to spend P66.3b to expand units

Conglomerate SM Investments Corp. said Monday it will spend P66.3 billion this year mostly to expand its property, banking and retail businesses.

Presentation materials posted on SMIC website showed that property unit SM Prime Holdings Inc. budgeted P50 billion for 2018 capital expenditures to develop integrated lifestyle projects including malls, high-rise residential and leisure homes, office buildings and hotels.

SM Prime said it planned to open six malls this year to end 2018 with a total of 75 malls. It also plans to launch 12,000 to 15,000 residential condominium units in Metro Manila and other key cities.

Banking units BDO Unibank Inc. and China Banking Corp. budgeted P11 billion in capital expenditures for branch expansion and information technology enhancements.

The SM Group’s retail business will also spend P5.2 billion for store expansion and renovation.

SM Retail plans to open four SM Stores, four SM Supermarkets, 18 Savemore stores, 2 SM Hypermarkets and 76 specialty stores this year.

SM Retail had a total of 2,032 outlets as of end-2017, including 59 The SM Stores, 1,299 specialty retail outlets, 52 SM Supermarkets, 47 SM Hypermarkets, 181 Savemore, 46 WalterMart and 348 Alfamart stores.

SMIC reported a net income of P32.9 billion in 2017, up 6 percent from P31.2 billion in 2016 on strong results from property, banking and retail businesses.

Consolidated revenues grew 9 percent in 2017 to P396.1 billion from P363.4 billion in 2016.

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

Outside core businesses, SMIC continues to build its portfolio of investments in complementary businesses.The group has equity investments in gaming and resorts development through Belle Corp., copper mining through Atlas Consolidated Mining and Development Corp., community mall through CityMall, logistics through 2Go Group Inc., dormitel through MyTown and business process outsourcing through Net Group.

Share price of SMIC rose 0.63 percent Monday to close at P964.

Topics: SM Investments Corp
COMMENT DISCLAIMER: Reader comments posted on this Web site are not in any way endorsed by Manila Standard. Comments are views by manilastandard.net readers who exercise their right to free expression and they do not necessarily represent or reflect the position or viewpoint of manilastandard.net. While reserving this publication’s right to delete comments that are deemed offensive, indecent or inconsistent with Manila Standard editorial standards, Manila Standard may not be held liable for any false information posted by readers in this comments section.
AdvertisementSpeaker GMA
Advertisement