SHARES of SM Investments Corp. (SMIC) reached new heights last week after the company celebrated its 11th year as a publicly listed firm.
Early last week, the share price of one of the country’s largest conglomerates reached an intraday high of P1,006 per share. It closed on Wednesday, the last trading day of the week, at P990.
SM shares were listed on March 22, 2005, with a price of P183.14 per share. “Investors acknowledge the SM growth story. Its commitment to the Philippines is apparent with its retail, banking and property footprint constantly expanding and harnessing the opportunities and synergies across its business to deliver optimal results for the past 11 years,” said Cora Guidote, SM SVP for Investor Relations.
In 2005 SM had total assets of P169.9 billion and a market capitalization of P127.2 billion. As of end 2015, SM’s assets were worth over P771 billion. Its market capitalization as of March 21, was over P693 billion. Revenues also accelerated in the last 11 years for an average growth of 17.15 percent per annum, with net income showing an average growth of 12.5 percent each year.
SM recently announced the plan to merge its retail arm, SM Retail Inc., with several related retail companies which operate leading local retail chains, including Ace Hardware, SM Appliance Center, Homeworld, Our Home, Toy Kingdom, Watsons, Kultura, Baby Company and several other specialty stores.
The combined entity will have 1,927 outlets and 2.4 million square meters of gross floor area across a diverse portfolio of food, household appliances, assemble-it-yourself furniture, apparel, footwear, pharmaceuticals, cosmetics and specialty retailing stores.
The portfolio will serve a wide range of Filipino consumer needs in both staple- and discretionary-goods categories and will continue to leverage extensive synergies across the SM group. Post-merger, SM will own 77.3 percent of the enlarged SM Retail Inc.
“The story of SM has inspired and surprised many, ourselves included, as we witnessed its phenomenal growth from humble beginnings to what it has become today. SM is a story of leadership, innovation, commitment, focus and a collective effort to advance the great legacy that Henry Sy Sr. built,” said Jose Sio, SM CFO.