SM net income up 5% in Q1

SM Investments Corporation (SMIC) posted a 5% climb in its bottom line for the first quarter of the year, as the company reduced expenses during the period.

Net income rose to P9.5 billion from P9 billion in the same period last year, while consolidated revenues fell 13% to P96.9 billion from P111.2 billion.

"We have reduced our operating costs and are benefiting from the high levels of cost efficiency that we focused on during the last 12 months," SMIC president and CEO Frederic DyBuncio said in a regulatory filing.

SMIC has interests in retail, property, and banking through its subsidiaries, which include SM Supermalls, The SM Store, SM Supermarket, SM Hypermarket, SaveMore, Walter Mart Supermarket Inc., Alfamart, SM Prime Holdings Inc., SM Development Corporation, BDO Unibank Inc., and China Banking Corporation.

Banking accounted for 54% of SMIC's reported net earnings from core businesses during the quarter, followed by property with 33%, and retail with 13%.

Total assets of the company remained at P1.2 trillion, while the gearing ratio stood at 38% net debt to 62% equity.

"We continue to invest in the well-being of our employees with our upcoming free vaccination initiative and provide critical support to our business partners, who are mostly small and medium enterprises," said DyBuncio.

"We strongly support health recovery efforts and remain optimistic about a strong recovery in due course," he added.

SMIC earlier said it will vaccinate all its employees against COVID-19 for free within the year, along with its facilities serving as testing and vaccination sites.

Shares in SMIC closed Wednesday at P951.00 apiece, down by P9.00 or 0.94% from Tuesday's finish of P960.00. — Jon Viktor D. Cabuenas/BM, GMA News