SM Investments Corp., the holding company of tycoon Henry Sy, said Wednesday net income increased 8 percent in the first quarter to P7.7 billion from P7.1 billion in the same period in 2016, led by steady profit margins across core businesses.
First-quarter consolidated revenues grew 8 percent in January to March to P84.5 billion from P78.4 billion a year ago, the conglomerate said in a disclosure to the stock exchange.
“SM is off to a strong start in the first quarter with good growth and steady profit margins across our core businesses. We are also pleased with recent acquisitions like our stake in 2Go Group, which will help us build our portfolio of investments to capture the high growth of the Philippine economy,” SMIC’s newly appointed president Frederic DyBuncio said.
Property accounted for 44 percent of the group’s consolidated net income in the first quarter, followed by banks at 35 percent and retail at 21 percent.
SM Retail Inc. reported a 7-percent growth in total sales to P61.4 billion in the first quarter, while net income rose 3 percent to P2.3 billion. As of end-March 2017, SM Retail had a total of 2,194 stores.
Banking unit BDO Unibank posted a net income of P5.8 billion, an increase of 6 percent from the previous year.
Property arm SM Prime Holdings Inc. reported net income growth of 13 percent in the first quarter to P6.6 billion.
SMIC said after completing two strategic acquisitions this year, it would to look to invest in partners with leading positions, strong management and potential for high growth and attractive yields.
SMIC last month acquired a 34.5-percent interest in the parent company of logistics firm 2Go Group and 61.2-percent in Philippine Urban Living Solutions Inc., a property developer that develop dormitories under the brand-name MyTown.
Other equity investments of the group are stakes in Belle Corp., Atlas Mining, Net Group and CityMalls Commercial Centers Inc.
“SM is taking opportunities to build its portfolio of investments in complementary businesses that will help capture the high growth of the Philippine economy,” the company said.
SMIC said total assets grew 16 percent to P895.5 billion as of end-March.