Conglomerate SM Investments Corp., the holding company of tycoon Henry Sy, said Wednesday net income in the first half climbed 9 percent to P16.6 billion from a year ago, boosted by strong contribution from core property, bank and retail businesses.
SMIC said excluding one-time items in 2016, recurring income jumped 16 percent in the first six months, on the back of strong revenue growth.
The company said in a disclosure to the stock exchange consolidated revenues climbed 7 percent to P181.6 billion in January to June, from P169.7 billion in the same period last year.
“Even without the benefits of an election year, we saw sustained growth across all our core businesses, driven by the strong economy and resilient consumer sentiment. SM will continue to capture this momentum through nationwide expansion and by investing in high-growth opportunities,” SMIC president Frederic DyBuncio said.
The property business contributed the most to consolidated net income at 42 percent. This was followed by banks with 36 percent and retail with 22 percent.
SMIC said outside core businesses, it continued to build complementary businesses that could enhance group synergies and other businesses that could offer stable cashflows with attractive returns.
Among its equity investment portfolio are resorts development through Belle Corp., copper mining through Atlas Consolidated Mining and Development Corp., community mall chain through CityMall, logistics through 2Go Group Inc., dormitel through MyTown and business process outsourcing through Net Group.
Retail unit SM Retail reported a 6-percent increase in net income and revenues to P5.2 billion and P131.6 billion, respectively. Net margin stood at 4.4 percent.
SM Retail’s food, non-food and specialty retail businesses continued to pursue aggressive expansion with the opening of new stores across the country. As of end-June 2017, SM Retail had a total of 2,357 stores.
SM Prime Holdings Inc., the property development unit, reported a first-half consolidated net income of P14.4 billion, up 14 percent from a year ago, while consolidated revenues increased 10 percent to P43.2 billion
BDO Unibank Inc. recorded a net income of P13.3 billion, while China Banking Corp. booked a net income growth of 10 percent to P3.6 billion in the first half, driven by the strong growth in lending business and core recurring income. SMIC has controlling stakes in BDO and China Bank.
SMIC’s total assets grew 1 percent to P916.3 billion as of end-June 2017.