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SMIC’s profit soars 11% to P27.45 B on bank earnings

SM Investments Corporation (SM) reported an 11 percent improvement in net income to P27.45 billion in 2013 from the P24.67 billion earned in 2012, due largely to the strong performance of subsidiary BDO Unibank.

In a disclosure to the Philippine Stock Exchange, SMIC said its revenue increased 13 percent to P253.53 billion in 2013 from P223.88 billion in the previous year.

EBITDA rose by 11 percent to P60.90 billion, for an EBITDA margin of 24.0 percent.  SMIC’s annual earnings per share (EPS) stood at P34.85 up 10 percent year-on-year.

“SM’s full year earnings for 2013 reflect the overall progressive economic environment of the country which, however, is tempered by competitive dynamics and the effects of continuous climate change,” said SMIC president Harley T. Sy.

He added that, “with that in mind, SM is constantly evolving to take advantage of the enormous opportunities that are made available by a fast emerging economy. SM will remain focused on its core businesses of retail, property, and banking with portfolio investments in high-growth emerging sectors.”

Of SMIC’s consolidated net income, banks accounted for the largest share, with a contribution of 42.8 percent. The property group, consisting of malls and real estate accounted for 35.9 percent while retail pitched in 21.3 percent.

BDO Unibank, Inc. (BDO) sustained its solid performance through the full year of 2013, as net income grew by 56% to P22.6 billion in an environment marked by high system liquidity and volatility in the capital markets.

SM Prime Holdings, Inc. reported combined net earnings of P16.27 billion in 2013. Recurring income grew 8 percent to P17.54 billion but was tempered by the one-time cost of P1.27 billion due to the recent consolidation of SM’s property assets into SM Prime.

For 2013, SM Retail reported a net income of P5.6 billion. Sales, meanwhile grew 14 percent to P180.9 billion. SM Retail’s net margin stood at 3 percent.

At the end of 2013, SM Retail had a total of 241 stores, consisting of 48 SM Department stores, and 193 food stores, consisting of 39 SM Supermarkets, 39 SM Hypermarkets, 93 SaveMore stores, and 22 Walter Mart supermarkets.