Politics

SMIC profit up 50% to P43B as economy picks up

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SM INVESTMENTS Corp. (SMIC) reported a 50% growth in its nine-month consolidated net income to P42.9 billion from P28.6 billion a year ago due to increased economic activity.

“We continued to gain momentum in our growth this quarter, supported by increased economic activity and strong consumer sentiment,” SMIC President and Chief Executive Officer Frederic C. DyBuncio said in a press release on Wednesday.

The company’s consolidated revenues reached P381.9 billion, up by 30.5% from P292.6 billion in the same period last year.

“With the addition of Philippine Geothermal Production Company and profitable performance across our invested companies, our portfolio investments have also become a meaningful contributor to the group,” Mr. DyBuncio said.

The listed holding firm has yet to release its financial performance for the July-September quarter.

For its January-September showing, SMIC said that 13% of its reported net earnings were contributed by its portfolio companies. Its banking arm made up 45%, property accounted for 23%, and retail contributed 19%.

“With encouraging results, we remain confident about sustained growth in the fourth quarter,” Mr. DyBuncio said.

BUSINESS SEGMENTSSM’s retail operations surpassed its pre-pandemic levels, registering P11.5 billion in net income, up by 138% from its 2021 results. Retail revenues increased by 26% to P258.1 billion from P204.9 billion previously.

Specialty stores registered growth in net income and revenues by 139% and 35%, respectively, as consumer spending remained strong.

SM Prime Holdings, Inc.’s consolidated net income rose 41% to P22 billion from P15.6 billion a year ago. The segment’s consolidated revenues increased 29.8% to P73.7 billion from P56.8 billion. Its local mall revenues jumped more than two times to P33.9 billion from P15.8 billion.

At the beginning of the third quarter, SM Prime resumed its full rental fees across its local malls after more than two years of providing “rent concessions.”

SM Development Corp.’s revenues were down by 11.8% to P28.3 billion from P32.1 billion. Revenues from its offices, hotels, and convention centers increased by 56.5% to P7.2 billion from P4.6 billion in the previous year.

BDO Unibank, Inc.’s net income rose by 23.5% to P40 billion in the nine months through September from P32.4 billion a year ago.

China Banking Corp. posted a year-to-date net income of 14.7 billion, which the company said was 31% higher than its 2021 showing.

On Wednesday, shares in SMIC dipped by 0.24% to close at P831 apiece. — Justine Irish D. Tabile