SM Prime Q1 profit down 5%
SM Prime Holdings Inc. (SM Prime) said profit for the first quarter of the year reached P8.3 billion, down 5 percent from P8.8 billion. Revenue stood at P25.8 billion, down 3 percent from P26.5 billion last year.
“The company’s first quarter results reflect the business disruption impact of the quarantine measures implemented last March 16, which affected primarily our leasing businesses. The residential segment has still 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 Jeffrey Lim, SM Prime president.
SM Prime said it mall business posted revenues of P11.3 billion, down 16 percent from P13.5 billion last year. Mall rental income was at P10.1 billion, down 12 percent from last year’s P11.5 billion. SM Prime has temporarily closed operations in the country since the implementation of the enhanced community quarantine (ECQ) due to new coronavirus disease 2019 (COVID-19), except for stores that offer essential products and services.
The company’s china malls meanwhile also suspended operation temporarily due to COVID-19 in China, the ground zero for the global pandemic, but are now running at 80 percent capacity its gradual reopening from February 10 to March 11 when lockdowns in China were being lifted.
The residential business under SM Development Corp. (SMDC) meanwhile posted revenues of P11.4 billion, up 23 percent from P9.3 billion last year. Reservation sales was at P24.8 billion.
The company’s other business segments meanwhile posted revenues of P2.2 billion. The office business segment continues to operate during ECQ with 90 percent of its tenants being business process outsourcing (BPO) offices, which were allowed by the Philippine’s Inter-Agency Task Force (IATF) to conduct business.
SM Prime’s hotels business meanwhile remains operational during ECQ, with some catering to BPO employees and returning overseas Filipino workers who are affected by the community quarantine measures in the country.
SM Prime said it will maintain its budget of P 80 billion capital expenditures for the to focus on projects that will deliver sustainable returns in the long term.
LT Group income up 41%
LT Group Inc. said profit in the first quarter hit P6.21 billion, up 41 percent from P4.42 billion in 2019.
“Philippine National Bank (PNB) contributed P761 million or 12 percent of total attributable income. The tobacco business accounted for P4.99 billion or 80 percent. Tanduay Distillers, Inc. (TDI) accounted for P199 million or 3 percent. Eton Properties Philippines, Inc. (Eton) added P168 million or 3 percent while Asia Brewery, Inc. (ABI) accounted for P74 million or 1 percent. The 30.9 percent stake in Victorias Milling Company, Inc. (VMC) contributed P91 million or 1 percent,” the company said.
PNB profit stood at P1.37 billion, down 30 percent from last year’s P1.95 billion, as the bank allocated P3.36 provisions for credit losses for the period.
Net Interest income was 25 percent higher as loans and receivables grew by 12 percent and net interest margin improved. Net service fees and commission income was flat while trading and foreign exchange gains were 158 percent higher.
The tobacco posted profit of P5 billion, up 76 percent from P2.85 billion last year. LT Group said the higher income is attributed to the higher share of premium Marlboro as well as the price increases implemented in late August 2019. Volume declined by 9 percent though.
The alcohol business under Tanduay Distillers Inc. (TDI) saw profit at P199 million, down 15 percent from P234 million last year, due to lower margins from higher alcohol costs.
“Revenues from liquor were 9 percent higher with the average P160 per case price increase implemented in January, which offset the 4 percent drop in volume. Revenues from bioethanol were 8 percent lower as both volume and selling prices declined,” the company said.
The property business under Eton Properties Philippines Inc. (Eton) meanwhile had profit at P169 million, up 13 percent, attributed to the increase in rental income and the improvement in the gross profit margin of real estate sales. At the end of March 2020, Eton Properties had a leasing portfolio of approximately 181,000 square meters of office space and over 43,000 square meters of retail space.
The beverage business under Asia Brewery, Inc. (ABI) had profit at P74 million, down 10 percent, due to the increase in equitized loss in a joint venture.
“Revenues were flat as higher revenues from beverages were offset by the drop in sales of packaging materials to third parties as more of the production capacity was earmarked for internal use,” the company said.
DM Wenceslao nets P445M
Property and construction firm D.M. Wenceslao & Associates Inc. said profit for the period was at P445.4 million, down 12 percent from P507.1 million last year.
Revenues stood at P1.02 billion, up 72 percent from P595.6 million last year, driven by record-high performance of its leasing and residential segments.
“Recurring income from leasing comprised 50 percent of total revenues while non-recurring sources such as residential and construction accounted for a combined share of 50 percent,” the company said.
DM Wenceslao said its leasing segment saw its “best quarter in history” with P512.7 million in revenues, up 4 percent from P493.9 million, benefiting from sustained occupancy and higher rates on new leases.
“In particular, revenues from leasing of land, building and other revenues related to rentals amounted to P256.4 million, P208.8 million and P47.5 million, respectively,” it said.
The residential segment meanwhile had its residential condominium sales hit P498.1 million, up 398 percent from P100 million, reflecting higher percentage of project completion and additional accounts that qualified for revenue recognition.
“We continue to show good progress against our strategic priorities of enhancing our earnings base and profitability by developing a portfolio of high-quality real estate projects, resulting in our highest quarterly revenues without land sale,” said Delfin Angelo Wenceslao, DM Wenceslao chief executive officer.
