Conglomerate SM Investments Corp. of the Sy Group said Thursday first-quarter net income stood at P9 billion, down 16 percent from the same period a year ago, reflecting the impact of the enhanced community quarantine and the COVID-19 pandemic on the company’s businesses.
SM Investments said in a disclosure to the stock exchange first-quarter consolidated revenues just rose two percent to P111.2 billion from P109.0 billion in 2019.
The group’s banking business contributed 46 percent of the income, while property and retail accounted for 44 percent and 10 percent, respectively.
“The ECQ and broader pandemic started to weigh on our performance during the first quarter. Our strong balance sheet, capabilities and partnerships provide us with the flexibility to anticipate and adapt to changes in customer needs and behaviors,” said SM Investments president Frederic DyBuncio.
“We are actively enhancing digital and delivery services across all our core businesses, while also working to support and protect our employees, customers, MSMEs and business partners,” he added,
Retail operations under SM Retail Inc., which consist of both food and non-food posted, revenues of P81 billion, up 3 percent from P79 billion n year.
Net income, however, declined 56 percent to P1.2 billion from P2.7 billion in the previous year.
Revenues from SM Retail’s specialty retail stores stood at P16.5 billion, down 16 percent from P19.6 billion a year ago.
Real estate unit SM Prime Holdings recorded a consolidated net income of P8.3 billion in the first quarter of 2020, down five percent from P8.8 billion in the first quarter of 2019.
Consolidated revenue dipped three percent to P25.8 billion as the mall business, which accounts for 47 percent of the total, temporarily closed operations after the implementation of ECQ, except for stores that offer essential products and services.
SM implemented sanitation protocols in all of SM’s essential businesses during the health crisis. It also supported the medical equipment and supplies needs of hospitals nationwide and worked with the government and other partners to provide much needed quarantine and testing facilities.
Share price SM Investments on Thursday fell 1.8 percent to P835.