SMIC profit jumps 13%

Banking concerns were biggest contributors in Q1

TYCOON Henry Sy-led SM Investments Corp. grew its first quarter net profit by 13 percent to P6 billion from a year ago on the back of robust banking, retail, shopping mall and real estate businesses.

Among SM’S core businesses, banks contributed most to the group’s net in the first three months with a share of 32.3 percent. The retail group followed, contributing 26.7 percent. Shopping malls and real estate had shares of 25.3 percent and 15.7 percent, respectively.

SM’S consolidated revenue rose by 16 percent to P49.7 billion from yearago level.

“The encouraging performance of SM in the first quarter of 2012 is due mainly to the strong start of its core businesses, some of which posted bet- ter-than-expected results for the period. With the prevailing positive outlook on the domestic economy, and the expected resilience of our subsidiaries, we remain optimistic that SM will attain its growth and expansion targets for the rest of the year,” Smpresident Harley Sy said in a statement.

The retail group, a high-volume but low-margin business, hit a first quarter net income of P1.1 billion, up by 20 percent from a year ago. The department store subsegment grew by 18 percent while the supermarket expanded by about 22 percent.

Total sales of the retail group rose by 10 percent to P34.4 billion. Contributing to its performance was the group’s sustained expansion, particularly through Savemore.

SM Retail opened eight new stores in the first three months, bringing the total number of stores to 176—42 department stores, 33 supermarkets, 69 Savemore branches and 32 hypermarkets.

Some of SM’S publicly listed units reported their first quarter results as follow:

Banco de Oro grew net income by 15 percent year-on-year to P2.8 billion and expects to expand full-year profit by 19 percent to P12.5 billion.

SM Prime Holdings grew its first quarter net income by 15 percent to P2.43 billion and is expecting to sustain this pace of growth for the rest of the year.

Residential developer SM Development Corp. grew its first quarter net income by 33 percent to P1.21 billion and is looking at a conservative growth of 15-20 percent in both topline and bottomline growth.