Profits of SM Investments Corp. grew faster last year as a result of higher income contribution from its retail, mall, banking and property businesses amid the slow economy and twin calamities in the last quarter.
In a statement issued on Wednesday, the Henry Sy-led holding firm said net income had gone up by 14 percent to P16 billion. Consolidated revenues went up by almost a tenth to P160.1 billion from a year earlier.
"SM achieved its goals in 2009, in spite of the formidable challenges brought about by the spate of natural calamities in the country and the continued weakness in the global economy," SM Investments President Harley T. Sy said.
SM Investments has five core businesses — retail (SM Retail, Inc.), malls (SM Prime Holdings, Inc.), banking (Banco de Oro Unibank, Inc. and China Banking Corp.), property (SM Land, Inc.) and hotel and entertainment.
The retail group, which accounted for more than a third of earnings, posted a 27.9-percent increase in net income to P4.4 billion given gains in food and nonfood businesses. Shopping malls accounted for about a quarter of earnings.
Last year, the retail group opened 24 stores, ending 2009 with 119 stores — 36 department stores, 26 supermarkets, 26 SaveMore branches, 19 hypermarkets, and 12 Makro outlets. This year, the group plans to open 15-18 stores costing P6 billion.
The banking business accounted for 27.6 percent of earnings. Profits of Banco de Oro almost tripled to P6.1 billion given growth in operating income and a slower increase in operating costs.
The latest addition to the SM group, the property segment, accounted for about a tenth of income, with revenues from real estate operations rising by half to P9.4 billion. Net income increased by more than a third to P2.2 billion.
As of end-2009, SM Development Corp. had 12 projects, up from seven in 2008.
"We continue to learn from every crisis situation that it pays to stay very focused on our strengths and on our long-term plans for further expansion," Sy said.
Storm Ondoy forced the company to temporarily close six SaveMore branches and the supermarket at SM City Sta. Mesa late last year. Storm Pepeng, which battered Northern Luzon, later flooded SM City Rosales in Pangasinan.
Shares of SM Investments gained P2.50 to P362.50 on Wednesday. — Neil Jerome C. Morales, BusinessWorld
