By Jenniffer B. Austria | Posted on Nov. 09, 2012 at 12:02am
[ manilastandardtoday.com ]
Conglomerate SM Investments Corp. earmarked P65 billion in capital expenditures for 2013, up 16 percent from P56 billion it spent this year to finance the growth of the company.
SM Investments chief finance officer Jose Sio said in an interview during the company’s third-quarter financial briefing the company would allot the bulk of the 2013 capital spending for shopping mall and property businesses.
Sio said a third of the capital spending would be funded through equity and loans while the balance would be sourced through internally generated funds.
SM Investments posted a net income of P16.1 billion in the first nine months of 2012, up 14 percent from P14.2 billion year-on-year. The conglomerate attributed the growth in earnings largely to the strong performance of the banks, malls, and retail operations. Revenues rose 13 percent to P157.9 billion from P139.2 billion on year.
Sio said all the company’s business groups were expected to sustain their growth next year, due to improving domestic economic conditions.
The company’s mall business is set to open SM Taguig and complete the expansion of SM Megamall this year.
Its supermarket business will also open 20 to 30 outlets in 2013, most of which are Savemore stores, to bring the total to 185. Savemore is a store format similar to a typical neighborhood grocery store.
SM Investments’ real estate unit SM Development Corp. also expects net income to increase 10 percent to 12 percent in 2013 as reservation sales will likely remain strong.