The Philippines’ SM Investments has achieved 14-per-cent sales growth in the first half year, its retail division up by 10 per cent.
Profit for the half year rose 27 per cent, with banking and property divisions driving most of the growth.
The company said SM Retail – which at the end of June had 2600 stores – earned P5.7 billion (US$109.2 million). Excluding the adjustments due to the adoption of a new accounting standard for leases, (IFRS 16), which changes the way leases are treated in financials, its retail division’s net income grew 10 per cent to P6.3 billion.
Net group income rose to P23 billion ($440.7 million) in the first half, P4.9 billion up on the same period last year.
“We delivered a strong first half, underpinned by remarkable bank earnings and robust residential take-up,” said SMIC president and CEO Frederic DyBuncio.
“Our retail business continues to do well and we are pleased with the rapid expansion of our minimart footprint through Alfamart,”
The company’s property and banking business account for the vast majority of its income – 41 per cent and 40 per cent respectively. SM Retail accounts for 19 per cent.
The property business SM Prime, which owns 72 shopping malls in the Philippines and seven in China, increased its income by 16 per cent to P19.3 billion in the first half. Mall revenues, including retail rents, cinema and event ticket sales and amusement facilities, accounted for 55 per cent of SM Prime’s total sales.
As at the end of June, the Philippines’ SM Investments assets totalled P1.1 trillion, 5 per cent more than at the same time a year earlier.