SMIC reports ₱9.5-B net profit in Q1,up 5%

SM Investments Corporation (SMIC), the flagship of the Sy family, reported a five percent improvement in consolidated net income to ₱9.5 billion in first quarter of 2021 from the ₱9.0 billion earned in the same period last year.

In a disclosure to the Philippine Stock Exchange, the firm said consolidated revenues in the first quarter stood at ₱96.9 billion, lower by 13 percent from ₱111.2 billion in the same period last year.

Banking accounted for 54 percent of SM’s reported net earnings from core businesses, followed by property at 33 percent and retail at 13 percent. The total assets of SMIC remained at ₱1.2 trillion.

“As our businesses adapt to a challenging operating environment and broader economic uncertainties, we continue to innovate and find new ways to service our customers’ needs,” SMIC President and Chief Executive Officer Frederic C. DyBuncio said.

He added that, “We have reduced our operating costs and are benefiting from the high levels of cost efficiency that we focused on during the last twelve months.”

Dybuncio said “We continue to invest in the well-being of our employees with our upcoming free vaccination initiative and provide critical support to our business partners, who are mostly small and medium enterprises. We strongly support health recovery efforts and remain optimistic about a strong recovery in due course.”

SM Retail reported first quarter revenues of ₱70.0 billion, lower by 14 percent compared to the same period last year. However, net income jumped 36 percent to ₱1.6 billion from ₱1.2 billion in the same quarter last year, boosted by cost reductions.

In Food Retail, significant savings were realized in utilities with the shift to more energy efficient lighting and refrigeration. Specialty stores likewise benefitted from cost reductions as net earnings grew 58 percent for this segment.

SM Prime Holdings, Inc. reported consolidated net income at ₱6.5 billion in the first quarter and ₱20.8 billion in consolidated revenues.

SM Prime’s residential business, led by SM Development Corporation, reported a 5 percent revenue growth to ₱11.9 billion in the first quarter from ₱11.4 billion in the same period last year.