SMIC Q1 profit down 16%

Published May 21, 2020 02:08 PM By JON VIKTOR D. CABUENAS, GMA News

Diversified conglomerate SM Investments Corp. (SMIC) on Thursday reported a 16% drop in its net income for the first three months of the year, reflecting the impact of the lockdown brought about by the coronavirus disease 2019 (COVID-19).

In an emailed statement, SM said its net income fell to P9 billion in the first quarter, even as consolidated revenues rose to P111.2 billion from P109 billion previously.

"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," said SM president Frederic 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," he elaborated.

Retail operations of the company, under SM Retail Inc., noted the biggest drop as net income fell 56% to P1.2 billion.

SM Retail consists of both food and non-food businesses under the brands SM Markets, WalterMart, Alfamart, The SM Store, and Specialty Retail.

In terms of property, SM Prime Holdings reported a 5% drop in net income to P8.3 billion from P8.8 billion, given the temporary closure of its malls due to lockdown.

Philippine mall rental income fell 12% to P10.1 billion from P11.5 billion, while revenues dropped 16% to P11.3 billion from p13.5 billion.

For the banking business, BDO Unibank's net income fell to P8.8 billion from P9.8 billion, while China Bank saw its net income grow by 19% to P2.2 billion.—AOL, GMA News

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