SM Group’s profit surged by 183% to P20.1b in first half

Conglomerate SM Investments Corp. said Wednesday first-half net income reached P20.1 billion, a 183-percent growth from P7.1 billion recorded in the same period last year.

First-half consolidated revenues climbed 4 percent to P193.5 billion from P185.5 billion a year ago.

Banking accounted for 58 percent of SMIC’s reported net earnings from core businesses, followed by property at 28 percent and retail at 14 percent.

“Our businesses continued to perform resiliently, recovering well as conditions allowed. Our banking and residential businesses performed well as we also continued to invest in long term expansion with new stores, bank branches, residential project launches and investments in malls, as well as taking a majority stake in 2GO in our equity investment portfolio,” SMIC president and chief executive Frederic DyBuncio said in a disclosure to the stock exchange.

The conglomerate’s retail business added 159 stores, while banks increased their network by 22 branches.

Residential unit SM Development Corp. launched two residential projects—Sands Residences in Manila and Cheerful 2 Residences in Pampanga, bringing over 3,900 new units to the market.

“We are hopeful that the recovery momentum continues as we see more Filipinos get vaccinated,” DyBuncio said.

SM Retail reported a net income of P3.6 billion, up from P522 million in the previous period, as it benefitted from cost reductions implemented in the first quarter across all formats and further efficiencies in the second quarter.

Revenues were slightly lower at P138.2 billion, versus P139.2 billion in the previous period.

The group’s property arm, SM Prime Holdings Inc., also reported net income of P11.6 billion in the first six months, or 12 percent higher than P10.4 billion in the first half of 2020.

BDO Unibank Inc. delivered P21.4 billion in profit in the first six months, on the back of strong sustainable earnings and normalized provisions.

SMIC earlier acquired controlling stake in logistics firm 2GO Group Inc. to 52.89 percent by acquiring additional shares owned by businessman Dennis Uy.

“We are confident of 2GO capturing a leading share in high value activities in the growing local logistics and distribution sector and are pleased to continue to support its growth,” DyBuncio said.

Topics: SM Investments Corp. , net income , SMIC president and chief executive Frederic DyBuncio
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