SM Investments Corporation (SM Investments), the parent company of the SM group, is optimistic about the Philippines’ growth momentum, reaffirming its commitment to the economy’s future, according to Erwin G. Pato, Executive Vice President for Treasury, Finance, and Planning.
In recent interviews on CNBC and Bloomberg, Mr. Pato highlighted SM Investments’ confidence in the country’s growth trajectory. He emphasized that the group’s synergized investments in retail, property, and financial services will continue to contribute to the consumption-driven growth of the Philippines.
The group also recently announced a PHP60-billion share buyback program, which is touted as the largest in Philippine corporate history. This initiative reflects SM’s positive outlook on the country’s economic future. SM’s decision to repurchase shares worth USD1 billion signals the company’s belief in its value appreciation and the continued growth of the Philippine economy.
“We’re having this buyback because we believe in our company and its growth potential,” said Mr. Pato.
“We believe that growth in the Philippines will continue to be consumption-driven,” he added. “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.”
SM Investments’ consolidated net income showed a 7% increase in 2024, rising to PHP82.6 billion from PHP77.0 billion in 2023. Meanwhile, SM Retail Inc., the group’s retail arm, posted a net income of PHP20.9 billion, up from PHP19.9 billion in the previous year.
“We’re a proxy of the Philippine economy because of our scale and the communities we serve,” Mr. Pato explained. “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.”
As one of the country’s leading property developers, SM Prime Holdings, Inc., the group’s property arm, is earmarking PHP100 billion this year for the development of its malls, residences, offices, hotels and convention centers. This investment is driven by expectations of sustained growth in consumer demand and corporate activity.
SM’s property firm, SM Prime recently unveiled its investment plan for the development of malls, residences and integrated properties.
