MANILA – SM Investments Corp., the operator of the Philippines’ largest mall chain, has reaffirmed its confidence on the growth trajectory of the country this year.
SM Investments Treasury, Finance, and Planning executive vice president Erwin Pato said the SM Group aligns its investments in retail, property, and financial services, noting that the Philippine economy 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,” Pato said in a statement Monday.
For its property development unit alone, SM Prime Holdings, Inc. is allocating PHP100 billion this year to construct new malls, residences, offices, hotels and convention centers, as it anticipates sustained growth in consumer demand and corporate activity.
With the positive outlook on the local economy, Pato pointed out SM Investments’ PHP60-billion share buyback program, as the listed firm believes that its share value will further pick up.
“We’re having this buyback because we believe in our company and its growth potential,” he added.
The SM Investments executive said the easing of interest rates and maintaining the inflation within the government target would support the country’s macroeconomic fundamentals.
“If that happens, it suggests a strong tailwind for the consumer story,” Pato said.
In 2024, SM Investments’ consolidated net income grew 7 percent to PHP82.6 billion from PHP77 billion. (PNA)