SM Retail reports 91% increase in net income
What: SM Investments Corporation reported its consolidated net income increased 27% to PHP25.5 billion in the January to June period from PHP20.1 billion in the same period last year.
Why it is important: Despite inflation, consumer spending across all categories and formats along with increased foot traffic as restrictions lowered led to SM Retail reporting revenues of PHP163.7 billion, an increase of 18% from PHP138.2 billion in the same period last year.
Retail net income was higher by 91%, PHP7.0 billion from PHP3.6 billion in the previous period, benefitting from cost reductions and efficiencies across all formats. Renewed interest in shopping for fashion-related items and dining out in mall restaurants increased foot traffic.
Over the past six months ending in June 2022, SM Retail and its affiliates added 147 stores. This brought the total number of stores to 3,336 (69 SM Stores, 1,543 Specialty Retail, 62 SM Supermarket, 52 SM Hypermarket, 214 Savemore, 1,320 Alfamart and 75 WalterMart stores).
Total assets were at PHP1.4 trillion. The gearing ratio stood at 39% net debt to 61% equity. In terms of net earnings, banks accounted for 48%, followed by property at 26%, retail at 20% and portfolio investments at 6%. Consolidated revenues rose 23% to PHP238.5 billion in the first half from PHP193.5 billion in the same period last year.