SMIC profit jumps 13% to P10.9B

ABS-CBN News

Posted at Aug 14 2012 10:37 AM | Updated as of Aug 15 2012 12:40 AM

MANILA, Philippines - Tycoon Henry Sy-led SM Investments Corp. (SMIC) on Tuesday reported its net income rose 13% in the first half to P10.9 billion, driven by its residential development, banking and mall businesses.

In a statement, SMIC said its total revenues jumped 14% to P105.2 billion from P92 billion as  all of its core businesses met sales targets.

Its banking business, BDO Unibank, provided the biggest income contribution to SMIC with 30.9%. BDO reported a  15% increase in its unaudited net income of P5.83 billion in the first half.

SM Retail, which consists of department stores, supermarkets and hypermarts, contributed 28.2% to SMIC's income. SM Retail's net income jumped 7.8% to P2.7 billion in the first 6 months of 2012.

As of end June, SM Retail had a total of 183 stores, consisting of 43 department stores, 34 SM Supermarkets, 73 SaveMore Stores and 33 SM Hypermarkets.

SM Prime Holdings, which handles mall operations, posted a 15% increase in net income of P4.9 billion in the January to June period, on the back of improved performance of its malls in the Philippines and China.

SMIC's property development arm SM Land posted a net income of P3.2 billion in the first half of 2012, 37% higher than the same period last year. SM Land's revenues went up 59% to P13.9 billion, most of which are from its residential arm SM Development Corp.

SMDC's first-half home sales surged 85% to P19.8 billion, as it sold 8,007 units,

In light of the recent floods that hit Metro Manila and nearby provinces, SM Foundation is doubling its relief efforts to help the victims.

"SM Foundation, our corporate social responsibility arm, doubled its relief operations this year, compared with the efforts done in previous calamities as we saw the larger scope of damage done by the recent monsoon surge. We will continue to help and assist our countrymen through medical missions and giving relief goods to the many areas affected by severe flooding," SM president Harley Sy said, in a statement.

The events hall in SM Megamall is currently serving as a drop off point for people who want to donate relief goods, which will be distributed by the company's foundation.