SM group says profits up on retail, property business
11/16/2009 | 04:36 PM
SM Investments Corp., the holding company of the Sy family and the Philippines’ wealthiest, on Monday announced that its net income rose by double digits in the first nine months of the year driven by its retail and property businesses.
SM said its earnings in the January to September period reached P10.8 billion or a 14-percent improvement as revenues also increased by 14 percent to P110.9 billion.
“SM’s nine-month results in 2009 affirm our growth track over the medium term, as it is achieved amidst a challenging global business climate. SM is poised to enter a new growth cycle led by our retail and property businesses. SM’s core businesses namely malls, retail, banking, and property mirror the strengths of the Philippine economy amidst the global financial crisis," said Harley Sy, SM president.
Retail contributed the most with 34 percent, followed by shopping malls and banking, both contributing 27 percent.
The real estate group gave a 12-percent contribution.
Jose Sio, SM chief financial officer, said that for the next five years, the company will be allotting about P211.33 billion in capital expenditures.
Sio said the more than P40-billion annual allocation for capital and expansion of the units of the SM group reflected the company’s confidence on the Philippine economy.
“Our balance sheet is very strong," Sio said.
For next year, the company will be spending P40.6 billion excluding those that will be allotted for its banking division, Banco de Oro Unibank Inc. and China Banking Corp.
Of the total amount, P14 billion will be used for property; P12.1 billion for mall development (excluding those in China); P6.2 billion for retail; and P4.9 billion for hotel and entertainment projects.
Sio said about 70 percent of the company’s funding requirements will come from internal sources while 30 percent from external sources.
“We can fund our capex without going outside for funding requirement, but this does not mean that we’re not going to do that," he added. –
Along with its projected ramped up spending, the company expects to double its net income in a five-year period from its 2009 projections of P15.5-billion profits. -Cheryl M. Arcibal, GMANews.TV
SM said its earnings in the January to September period reached P10.8 billion or a 14-percent improvement as revenues also increased by 14 percent to P110.9 billion.
“SM’s nine-month results in 2009 affirm our growth track over the medium term, as it is achieved amidst a challenging global business climate. SM is poised to enter a new growth cycle led by our retail and property businesses. SM’s core businesses namely malls, retail, banking, and property mirror the strengths of the Philippine economy amidst the global financial crisis," said Harley Sy, SM president.
Retail contributed the most with 34 percent, followed by shopping malls and banking, both contributing 27 percent.
The real estate group gave a 12-percent contribution.
Jose Sio, SM chief financial officer, said that for the next five years, the company will be allotting about P211.33 billion in capital expenditures.
Sio said the more than P40-billion annual allocation for capital and expansion of the units of the SM group reflected the company’s confidence on the Philippine economy.
“Our balance sheet is very strong," Sio said.
For next year, the company will be spending P40.6 billion excluding those that will be allotted for its banking division, Banco de Oro Unibank Inc. and China Banking Corp.
Of the total amount, P14 billion will be used for property; P12.1 billion for mall development (excluding those in China); P6.2 billion for retail; and P4.9 billion for hotel and entertainment projects.
Sio said about 70 percent of the company’s funding requirements will come from internal sources while 30 percent from external sources.
“We can fund our capex without going outside for funding requirement, but this does not mean that we’re not going to do that," he added. –
Along with its projected ramped up spending, the company expects to double its net income in a five-year period from its 2009 projections of P15.5-billion profits. -Cheryl M. Arcibal, GMANews.TV
