Conglomerate SM Investments Corp. said Monday net income jumped 65 percent in 2021 to P38.5 billion from P23.4 billion in 2020 on a strong fourth-quarter performance.
SM Investments said in a disclosure to the stock exchange consolidated revenues rose 9 percent last year to P428.1 billion from P394.2 billion in 2020.
“We saw a rebound in consumer spending in the run-up to Christmas as restrictions across the country eased. This led to improved performance in our retail and mall units as our banks continued to deliver solid results,” SM Investments president and chief executive Frederic DyBuncio said.
“It is our hope that the further easing of restrictions after the latest surge in COVID cases will lead to sustained recovery of the economy and our businesses as the country adjusts to living with the virus. We are committed to continue our expansion plans,” DyBuncio said.
Banking contributed 51 percent to net income, while property accounted for 25 percent. Retail contributed 17 percent, and the portfolio investments delivered the remaining 7 percent.
“We believe our portfolio investments have strong assets, synergies with our core businesses and enormous long-term growth potential,” DyBuncio said.
SM Investments increased its ownership in Goldilocks Bakeshop Inc. to 74 percent and 2GO Group Inc. to 53 percent in 2021.
SM Retail, which consists of food and non-food stores, reported a net income of P9.6 billion, up by 133 percent from P4.1 billion a year earlier.
Revenues inched up by 2 percent in 2021 to P303.9 billion from P296.8 billion in 2020 on sustained growth in sales particularly for the SM Stores and Specialty Stores.
SM Retail opened two new department stores in Caloocan and Camarines Norte last year. The food group, which includes SM Supermarket, SM Hypermarket and Savemore, Alfamart and WalterMart also added 219 new stores in 2021.
SM Retail added 294 new stores across the entire portfolio for a total of 3,215 outlets, consisting of 68 The SM Stores, 1,539 specialty retail stores, 62 SM Supermarkets, 52 SM Hypermarkets, 214 Savemore, 73 WalterMart and 1,207 Alfamart stores as of end-2021.
Property unit SM Prime Holdings Inc. registered consolidated net income of P21.8 billion, up 21 percent as consolidated revenues were flat at P82.3 billion.
Banking unit BDO Unibank Inc. recorded a net income of P42.8 billion in 2021, an increase of 51 percent from P28.2 billion in 2020.
China Banking Corp. also ended 2021 stronger on the back of sustained core business growth and effective cost management. The bank posted a 25-percent increase in net income to P15.1 billion.
The total assets of SM grew 10 percent to P1.3 trillion as of end-2021. SM maintains a healthy balance sheet, with a conservative gearing ratio of 38 percent net debt to 62 percent total equity.
SM Investments, SM Prime and NEO, a part of SM’s portfolio investments, signed on as supporters of the Task Force on Climate-related Financial Disclosures in 2021, joining more than 2,300 supporters, in alignment with globally-recognized frameworks for climate change reporting.
NEO was also cited as the first company in the world to be certified as EDGE Zero Carbon for all their buildings by the International Finance Corp., while advancing the Net Zero Philippines program of the Philippine Green Building Council. NEO is the first office portfolio in Southeast Asia to achieve the WELL Health-Safety Seal.