SM Maintains Confidence in the Country’s Growth Trajectory

SM’s property firm, SM Prime recently unveiled its investment plan for the development of malls, residences and integrated properties.

SM Investments Corporation (SM Investments), the parent company of the SM Group, is enthusiastic about the Philippines' growth momentum and has reaffirmed its commitment to the economy's future, according to Erwin G. Pato, Executive Vice President for Treasury, Finance, and Planning.

In recent interviews with CNBC and Bloomberg, Mr. Pato expressed SM Investments' confidence in the country's growth trajectory.  He stressed that the group's synergized investments in retail, real estate, and financial services will continue to support the Philippines' consumption-led economy.

The business also recently announced a PHP60-billion share buyback scheme, billed as the largest in Philippine corporate history. This project shows SM's optimistic perspective for the country's economic future.  SM's move to repurchase shares worth USD1 billion demonstrates the company's confidence in its value appreciation and the Philippine economy's continuing expansion.

“We're having this buyback because we believe in our company and its growth potential. We believe that growth in the Philippines will continue to be consumption-driven. Seventy percent of our gross domestic product (GDP) is consumption-driven, and our business is right within that footprint. Our offerings in retail, integrated property development, and financial services will continue to be key players in this consumption-driven growth. We’re a proxy of the Philippine economy because of our scale and the communities we serve. With lowering interest rates, we believe this will help our macroeconomics and could lead our economic managers to achieve our inflation rate within the 2% to 4% range. If that happens, it suggests a strong tailwind for the consumer story.” ~Erwin G. Pato, Executive Vice President for Treasury, Finance, and Planning

SM Investments' consolidated net income increased 7% in 2024, reaching PHP82.6 billion from PHP77.0 billion in 2023. Meanwhile, SM Retail Inc., the group's retail division, reported a net income of PHP20.9 billion, up from PHP19.9 billion the previous year.

As one of the country's top property developers, SM Prime Holdings, Inc., the group's property arm, plans to invest PHP100 billion this year in the building of malls, apartments, offices, hotels, and conference centers.  This investment is motivated by the prospect of continued increase in consumer demand and corporate activity.

About SM Investments Corporation

SM Investments Corporation is one of the leading Philippine companies that is invested in market-leading businesses in retail, banking, and property. It also invests in ventures that capture high growth opportunities in the emerging Philippine economy.

SM’s retail operations are the country’s largest and most diversified, consisting of grocery stores, department stores and specialty retail stores. SM’s property arm, SM Prime Holdings, Inc., is the largest integrated property developer in the Philippines with interests in malls, residences, offices, hotels, and convention centers as well as tourism-related property developments. SM’s interests in banking are in BDO Unibank, Inc., the country’s largest bank, and China Banking Corporation, the fourth largest private domestic bank.

For more information, please visit www.sminvestments.com 

For inquiries, please contact: smic_corpcomm@sminvestments.com