Manila's SM Investments Q1 profit rises 15 pct

MANILA, May 13 (Reuters) - Philippine conglomerate SM Investments Corp (SM.PS) said on Tuesday its net income grew 15 percent in the first quarter, buoyed by strong revenue growth from its retail and property business.

SM Investments, the holding firm of one of the country's richest men, Henry Sy, said net income rose to 3.8 billion pesos ($89 million) in January-March versus the 3.3 billion pesos reported in the same period last year.

"Notwithstanding greater challenges from external factors, SM continued to deliver healthy earnings growth in the first quarter, mainly driven by increased efficiencies in the retail sector, and the increasing momentum in the property business," company president Harley Sy said in a statement.

SM Investments' businesses, which centre on its malls, have capitalised on robust consumer spending, which is largely fuelled by billions of dollars in remittances sent home by Filipinos working overseas.

The group's stock was trading almost 3 percent higher at 262.50 pesos at 0320 GMT, while the broader market .PSI was up 1.4 percent.

As in the rest of Asia, consumers in the Philippines are facing rising costs for food, fuel and other basic goods which are expected to crimp private consumption.

Annual April inflation jumped to a near three-year high of 8.3 percent in the Philippines.

SM Investments' consolidated revenues climbed 14 percent to 30.1 billion pesos in the first three quarter of the year.

Retail revenues grew 19 percent to 25.2 bllion in the first quarter and rental revenues from malls and other properties also expanded by 13.5 percent to 2.9 billion pesos.

Last year, SM Investments' net profit rose 14 percent to 12 billion pesos.

SM Investments has previously said it was confident of meeting this year's goal of a 13-14 percent increase in net profit despite rising prices hitting consumer pockets. ($1=42.65 Philippine Peso) (Reporting by Karen Lema; Editing by Anshuman Daga)