MANILA, Philippines – SM Investments Corporation (SMIC) revealed an increase of 6 percent in the company’s net profit to 32.9 billion pesos in 2017 as its primary businesses maintained its growth amid the strong development momentum of the economy.
Frederic DyBuncio, president of SMIC, mentioned that the company’s development plans also improved the company’s growth.
Businesses of SMIC involve banking, property, retail, and tourism-associated developments.
According to him, with recurring net profit increase of 9 percent, the company’s primary businesses kept on giving compelling results last year, prompted by both the company’s nationwide extension plan and the economy’s entire growth. Particularly, their specialty retail and property businesses gave excellent results. SMIC invested substantially in the company’s banks as well as in new opportunities throughout the year, which is expected to aid in higher revenue growth in the coming years.
The corporation recorded 396.1 billion in profits, higher by 9 percent compared to the past year.
Of the company’s businesses, their property business accounted for 40 percent of the gross earnings, banking business 38 percent, and retail business 22 percent.
Through the SM Stores and Markets, retail operations revealed a net profit of 10.5 billion pesos as its revenues increased by 7 percent to 297.4 billion pesos.
Guided by the company’s strong development in higher-margin retailing as well as with Miniso’s success throughout the year, retail operations’ actual performance remained sturdy, DyBuncio said.
Miniso is a retail store chain that sells various products, and currently, the store chain has several branches located in the Philippines and within SM Malls.
SM Retail owned 2,032 stores, consisting of 46 Walter Mart stores, 47 SM Hypermarkets, 52 SM Supermarkets, 59 The SM Stores, 181 Savemore stores, 348 Alfamart stores, and 1,299 specialty retail outlets, as of end of December in 2017. A sum of 341 stores were added last year across the portfolio of the retail business.
As for its property business, SM Prime Holdings Incorporated stated a growth of 16 percent to 27.6 billion pesos in its recurring net profit was seen, with growth in rental profit from malls and the strong take-up of sales of residential spaces being the key drivers.
On January 15, 1960, SM Investments Corporation was incorporated as SM Group of Companies’ parent corporation having investments in management and development of shopping malls, development of real estates, banking, retail, and tourism. The corporation was established by Henry Sy, Sr., and has become one of the biggest corporations in the Philippines.