The Philippines’ SM Investments has achieved 14-per-cent sales growth in the first half-year, its retail division up by 10 percent.
Profit for the half-year rose 27 percent, 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 percent 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 percent and 40 percent respectively. SM Retail accounts for 19 percent.
The property business SM Prime, which owns 72 shopping malls in the Philippines and seven in China, increased its income by 16 percent to P19.3 billion in the first half. Mall revenues, including retail rents, cinema and event ticket sales and amusement facilities, accounted for 55 percent of SM Prime’s total sales.
As at the end of June, the Philippines’ SM Investments assets totaled P1.1 trillion, 5 percent more than at the same time a year earlier.