SM Investments Corp., the holding company of tycoon Henry Sy, said Wednesday net income rose 8 percent in 2016 to a record P31.2 billion from a year ago, on sustained growth of core businesses.
SMIC said in a disclosure to the stock exchange the property business accounted for 39 percent of total earnings, while banks comprised 37 percent and retail, 24 percent.
“Our core businesses performed well and continue to grow in line with the country’s strong economic development. We are optimistic about continued development and that government plans for infrastructure, agriculture and tourism in particular will enable broader regional growth. SM continues to prioritize regional investment and our nationwide expansion plans are focused on effective execution,” SMIC president Harley Sy said.
Revenues climbed 9 percent to P362.8 billion last year, up from P332.8 billion in 2015, fueled by an 8-percent increase in retail revenues and a 12-percent growth in property revenues.
SM Retail Inc., which operates the company’s non-food and food stores, reported sales of P276.5 billion in 2016, up 8 percent from a year ago, while net income grew 7 percent to P10.6 billion from P9.9 billion.
SMIC merged its retail businesses under SM Retail in 2016. It now owns over 1,400 outlets.
Real estate unit SM Prime Holdings also reported a recurring net income of P23.8 billion, up 14 percent from 2015, as consolidated revenues grew 12 percent to P79.8 billion.
Banking unit BDO Unibank Inc. also posted a net income of P26.1 billion in 2016, on the back of strong results across core businesses. This matched the bank’s earnings guidance for last year and represented a record net income for the bank.
Total assets of SM Investments grew 10 percent to P861.5 billion as of end-2016.