Conglomerate SM Investments Corp. (SMIC) said the coronavirus disease 2019 (Covid-19) pandemic weighed on its performance in the first quarter as its net income during the period fell 16 percent to P9 billion, from last year’s P10.69 billion.
Consolidated revenues rose 2 percent to P111.2 billion from P109 billion last year.
Banks contributed 46 percent of net income, while property and retail added 44 percent and 10 percent, respectively.
“The ECQ [enhanced community quarantine] 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,” said SMIC President Frederic C. DyBuncio.
“We are actively enhancing digital and delivery services across all our core businesses, while also working to support and protect our employees, customers, MSMEs and business partners.”
Retail operations under SM Retail Inc., which consist of both food—SM Markets, WalterMart and Alfamart—and nonfood—department store and specialty retail—posted revenues of P81 billion, still up 3 percent from last year’s P79 billion.
Net income of the retail group stood at P1.2 billion, down 56 percent from P2.7 billion the previous year.
Revenues from SMIC’s specialty retail stores stood at P16.5 billion, lower by 16 percent from the P19.6 billion recorded a year ago.
Mall operator SM Prime Holdings Inc. posted a 5-percent drop in consolidated net income to P8.3 billion, from P8.8 billion last year.
Consolidated revenues fell 3 percent to P25.8 billion, from P26.5 billion last year.
The mall business, which accounts for 47 percent of consolidated revenues, closed operations since the implementation of ECQ, except for stores that offer essential products and services.
Domestic malls recorded revenues of P11.3 billion, 16 percent down from P13.5 billion last year.
Mall rental income fell 12 percent to P10.1 billion, from last year’s P11.5 billion.
The residential group, led by SM Development Corp. (SMDC), which accounts for 44 percent of consolidated revenues, recorded a 23-percent increase in revenues to P11.4 billion, from P9.3 billion a year ago.
SMDC’s reservation sales amounted to P24.8 billion.
SM Prime’s other business segments reported consolidated revenues of P2.2 billion in the first three months of the year.
“The residential segment has shown strong growth in the first three months, abating the effect of revenue losses in the malls segment. The balance between our recurring and developmental income streams sustains our healthy financial position during this pandemic,” said SM Prime President Jeffrey C. Lim.
BDO Unibank posted a 10-percent fall in income to P8.8 billion for the period, from P9.8 billion last year, while China Banking Corp. saw its net income go up by 19 percent year-on-year to P2.2 billion.