MANILA — SM Investments Corp. (SMIC) reported a 15 percent growth in net income from P18.4 billion in 2010 to P21.2 billion (roughly $1.2 billion) in 2011 as a result of the strong performance of its core businesses.
In a disclosure to the Philippine Stock Exchange, SMIC stated that its consolidated revenues increased by 13 percent to P200.7 billion in 2011, compared with P177.2 billion in 2010.
SM President Harley T. Sy stated, “2011 proved to be a favorable year for SM, as it was able to continue delivering positive results amid increased challenges in the external environment.”
He said that support by the entire SM organization and the patronage of customers, shareholders and other stakeholders “make us look to 2012 with added optimism in sustaining SM’s growth and expansion.”
Among SM’s core businesses, its banks yielded the most in the company’s 2011 profits, contributing 31.1 percent of the total net income.
The retail group came in second with 30.2 percent, followed by shopping malls and real estate, which contributed 23.5 percent and 15.2 percent, respectively.
SM Retail reported a 2011 net income of P5.8 billion, up three percent compared to 2010, while total sales for the group grew nine percent to P148.2 billion.
Its continued expansion, particularly through new SaveMore branches, remains a key driver of the group’s performance as 25 more new branches were opened in 2011, compared to 14 in the previous year.
SM Retail opened 34 new stores in 2011, and it now has a total of 169 stores by the end of the year.
The total consists of 41 department stores, 33 supermarkets, 65 SaveMore branches and 30 hypermarkets.
The store-expansion program in 2012 will continue to focus on provinces for the anchor stores located in malls, while SaveMore will see its number of stores growing by 30 to 40 stores nationwide. (JAL, Manila Bulletin)