By Leslie D. Venzon
MANILA, March 4 (PNA) — Philippine conglomerate SM Investments Corp. (SM) booked a 3.65-percent increase in profit in 2014 on the back mainly of its banking and property businesses.
In a disclosure to the Philippine Stock Exchange, SMIC said its consolidated net income reached Php28.4 billion last year from Php27.4 billion in 2013.
Consolidated revenues grew nine percent to Php275.7 billion in 2014 from Php253.3 billion the previous year. This was the result of a good retail sales environment which also boosted rental revenues in SM’s property business.
SM President Harley T. Sy attributed the group’s strong underlying earnings growth of 14.4 percent in 2014 to solid performance and ongoing expansion in its three core businesses.
“During the year, we raised additional capital and entered into several strong partnerships, accelerating our investments for growth and ensuring we expand in line with our continuing optimism about the economic prospects of the Philippines,” he said.
SM’s underlying earnings growth was mainly driven by BDO Unibank Inc. which posted a core income growth of 18 percent.
Together with China Banking Corp., banks accounted for 41 percent of SM’s consolidated net income in 2014. Property contributed 38 percent and retail 21 percent.
BDO recorded net income attributable to equity holders of the parent of Php22.8 billion compared with Php22.6 billion in 2014. BDO’s recurring income grew 18 percent, excluding one-off trading gains in 2013.
Meanwhile, China Banking Corporation (China Bank) posted a full-year consolidated net income of Php5.11 billion in 2014 on the back of sustained growth in core business operations.
SM also drew strength from its property operations through SM Prime Holdings Inc. which posted consolidated net income of Php18.4 billion last year, up 13 percent from Php16.72 billion in 2013.
Last year marked a significant milestone as SM Prime opened its 50th mall in Angono, Rizal province, bringing its total gross floor area to 6.5 million square meters.
SM Prime also now operates five malls in China and plans to open one mall per year going forward.
Its retail operations under SM Retail Inc. sustained its growth with net income increasing by 3.3 percent to Php5.9 billion while total sales rose nine percent to Php197.1 billion.
At end 2014, SM Retail had a total of 269 stores, comprising 50 SM Stores, 40 SM Supermarkets, 42 SM Hypermarkets, 113 Savemore stores and 24 WalterMart stores. (PNA)