The conglomerate led by Sy SM Investments Corp. (SMIC) recorded a huge increase in profits in the first nine months of 2021 following the reopening of the economy amid the pandemic.
In a statement to the Philippine Stock Exchange on Wednesday, SMIC reported net profit of 27.2 billion pesos for the January-September period, up 79% from 15.2 billion pesos in the same period. last year.
The company’s consolidated revenue, meanwhile, rose 5% year-on-year to 289.4 billion pesos from 276.4 billion pesos.
Minimum wage banking earned the lion’s share (60%) of profits, followed by real estate at 27% and retail at 13%.
“Our third quarter results reflect the resilience of all of our businesses and early signs of an opening in the economy. With improved vaccination rates across the country and a drop in COVID-19 cases, we are optimistic about the conditions for the fourth quarter, but let’s continue to be vigilant about the risks,” said SMIC President and CEO Frederic DyBuncio.
SM Retail recorded a net retail income of 4.8 billion pesos, compared to 2.2 billion pesos for the comparative period, benefiting from the sustained growth in sales of the SM STORE and specialized stores as well as the management costs.
Its real estate arm, SM Prime Holdings Inc., saw its consolidated net profit increase by 9% to 15.6 billion pesos in the first nine months of 2021, compared to 14.4 billion pesos in the same period last year. the latter thanks to its SM Development unit. Reserve Sales Corp. reached P76.3 billion, up 14% year-on-year.
SM Prime’s Philippine shopping center business, which accounts for 28% of consolidated revenue, posted revenue of 15.8 billion pesos, 14% less than the 18.3 billion pesos of the last year.
The re-implementation of a stricter community quarantine in August 2021 has affected the operation of local businesses in the mall, limiting the operation of non-essential stores in accordance with IATF or Inter-Agency Management Task Force guidelines emerging infectious diseases, SMIC mentioned.
Meanwhile, SM Prime’s mall business in China saw a 28% increase in revenue during the period.
BDO Unibank Inc. reported a net profit of 32.4 billion pesos against 16.6 billion pesos a year ago due to a resilient business franchise and normalized provisions.
Similarly, China Banking Corp. recorded a consolidated net profit of 11.2 billion pesos for the period from January to September, up 35% year-on-year thanks to sustained growth in the core business and effective management of costs. — News VBL, GMA
