SM Retail sales grew across all operations – which consist of both SM Markets and The SM Store.
Total sales grew 8 per cent to P48.8 billion (US$1.0 billion) in the first quarter, while net income rose 16 per cent to P1.5 billion.
SM’s food retail business continued to expand, adding five new stores. At the end of March, SM Retail had 314 stores comprising 53 The SM Stores, 45 SM Supermarkets, 44 SM Hypermarkets, 140 Savemore and 32 WalterMart stores.
Two acquired Cherry Foodarama grocery stores are now fully operational inside SM Cherry malls in Shaw and Congressional Avenue.
SM earlier announced the merger of SM Retail with a group of specialty retail stores such as Ace Hardware, SM Appliance Center, Homeworld, Our Home, Toy Kingdom, Watsons, Kultura, Baby Company and Sports Central. The combined entity will have over 1900 outlets and 2.4 million sqm of GFA.
“We are pleased with SM’s strong underlying growth in the first quarter as consumer spending continued to be vibrant and sentiment about the Philippine economy remains strong. Our continuing efforts to improve efficiencies in all our businesses have also helped ensure solid earnings growth,” SM president Harley Sy said.
SM Investments posted a 12 per cent growth in recurring net income in the first quarter of 2016. Consolidated net income (including non-recurring items) stood at P7.0 billion for January to March, up 3.6 per cent from P6.7 billion year-on-year. Consolidated revenues grew 7 per cent to P69.8 billion for the first quarter.