SM Development reports first-half income up 38%
Thursday, August 2, 2012
Source: Business Mirror By Miguel R. Camus / Reporter
LISTED residential builder SM Development Corp. (SMDC) said net income in the six months to June jumped 38 percent to P2.7 billion as sales to its core middle-income market remained robust.
In a statement on Wednesday, SMDC said revenues from real estate rose 73.6 percent to P11.9 billion. It said earnings before interest, taxes, depreciation, and amortization (Ebitda) rose by 32.6 percent to P2.97 billion for an Ebitda margin of 25 percent.
SMDC said reservation sales during the period surged 85 percent to P19.8 billion as it sold 8,007 units, an increase of 72 percent.
“We are highly gratified by the warm response that the market continues to give to SMDC’s products. Our homebuyers encourage all of us to work even harder to match their expectations or even exceed them in terms of quality, lifestyle and convenience,” Henry T. Sy Jr. SMDC vice chairman and chief executive officer said in the statement.
SMDC president Rosaline Qua earlier said the builder can increase full-year profits by 20 percent to 25 percent over 2011. Its consolidated net income last year grew by 38 percent to P4.18 billion.
For the year, SMDC is launching 17,300 units valued at about P37 billion.
SMDC, which recently raised P6.3 billion from a debt issuance, is spending P20 billion this year to expand its portfolio and for new property acquisitions. At present, the company has a total of 16 projects under construction and plans to launch five more this year.