Friday, 14 August 2009

SM notches P7.4-B profit, up by 14%

Manila Bulletin

SM Investments Corporation (SM) expects to exceed its 12 percent growth target in profits this year after it reported a 14 percent growth in net income to P7.4 billion for the first half of 2009 from P6.5 billion during the same period in 2008. “We will exceed our target this year, said SMIC chief finance officer Jose Sio in a press briefing yesterday after noting that they expect a stronger recovery in the market in the second semester.

He added that, even not counting the recovery, earnings are usually stronger in the second half of a normal year due to seasonal factors. “We typically earn 60 percent of total earnings in the second half,” Sio said.

In a disclosure to the Philippine Stock Exchange, the company said its consolidated revenues for the first half increased 13 percent to P74.5 billion as compared to P65.8 billion in 2008. EBITDA for the period reached P16.3 billion, for an EBITDA margin of 21.9 percent.

SM president Harley Sy said “SM’s results for the first six months of the year stayed on-track as all our major subsidiaries performed well amid a generally slower business environment due to the global financial crisis.”

He added that “our long-term view of the economy keeps us focused on our strategic expansion program in all our lines of business, complemented by efforts to better understand our markets, and ensuring cost efficiencies.”

SM’s main growth drivers continued to be the retail and property groups, while the mall business was a major source of steady growth in earnings.

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