SM net income down by 16% to P9B in Q1

MANILA – The country’s largest conglomerate SM Investments Corporation (SM) on Thursday reported its profit declined by 16 percent in the first quarter of 2020 due partially to effects of the coronavirus disease 2019 (Covid-19) pandemic and enhanced community quarantine (ECQ).

In a statement, SM said net income stood at PHP9 billion in January to March from PHP10.

7 billion during the same period last year.

Consolidated revenues rose to PHP111.2 billion from PHP109 billion.

Banks contributed 46 percent of net income, while property and retail added 44 percent and 10 percent, respectively.

“The ECQ and broader pandemic started to weigh on our performance during the first quarter. Our strong balance sheet, capabilities and partnerships provide us with the flexibility to anticipate and adapt to changes in customer needs and behaviors. We are actively enhancing digital and delivery services across all our core businesses, while also working to support and protect our employees, customers, MSMEs (micro, small and medium enterprises) and business partners,” SM President Frederic DyBuncio said.

During the crisis, SM implemented sanitation protocols in all its essential businesses.

It also supported the medical equipment and supplies needs of hospitals nationwide and worked with the government and other partners to provide much needed quarantine and testing facilities.

BDO Unibank posted PHP8.8 billion in net income in the first quarter from PHP9.8 billion previously, as core lending and deposit-taking businesses sustained their growth despite the ECQ.

China Bank saw its net income increase by 19 percent to PHP2.2 billion in the first quarter, driven by sustained growth of its core businesses.

SM Prime Holdings recorded a consolidated net income of PHP8.3 billion in the first quarter of 2020, down by 5 percent compared with PHP8.8 billion in the first quarter of 2019.

The mall business, which accounts for 47 percent of consolidated revenues, has temporarily closed operations since the implementation of ECQ, except for stores that offer essential products and services.

The residential group, led by SM Development Corporation (SMDC), which accounts for 44 percent of consolidated revenues, recorded a 23-percent increase in revenues to PHP11.4 billion from PHP9.3 billion in the same period last year.

Retail operations under SM Retail Inc., which consist of both food and non-food posted revenues of PHP81.

0 billion, up 3 percent from PHP79.0 billion in the previous year.

Net income stood at PHP1.2 billion, down 56 percent from PHP2.7 billion the previous year.