SMIC upbeat on long-term growth

February 12, 2025 | 12:00am

MANILA, Philippines — SM Investments Corp. (SMIC), the investment holding company of the Sy family, has expressed confidence on its long-term growth trajectory as the group expects to remain resilient amid growing synergies across its business.

SMIC’s confidence in its sustained growth is fueled by a resilient consumption-led economy, synergies across its business segments and strong consumer fundamentals, the company said in a statement.

“The Philippine economy remains consumption-driven and SM Investments is well-positioned to support and capture this demand,” SMIC president and CEO Frederic DyBuncio said.

DyBuncio said  the group’s strong ecosystem spanning retail, banking and property enables it to navigate challenges while delivering long-term value.

“Our businesses complement each other—our expanding retail footprint enhances mall traffic, while BDO provides financial solutions that fuel both consumption and enterprise growth. These synergies allow us to build resilience and create shared value for our stakeholders,” he said.

DyBuncio said  SMIC also continues to see strong demand for essentials, with minimarts playing an essential role in serving everyday consumer needs.

As such, the group’s minimart chain Alfamart is expected to continue its expansion this year.

Alfamart has grown its footprint to 2,100 in the last 10 years, with branches mainly in Luzon and Metro Manila.

A recent report by equity research firm CLSA said that SM’s retail segment is poised to benefit from minimum wage increases, sustained remittances and consumer spending resilience despite macroeconomic uncertainties.

“We would note SM Investments remains largely resilient and is worth a look given its valuation. SM Investments is a beneficiary of a consumption-driven economy,” CLSA said.

“We anticipate spending behavior to continue to favor staples (essential items) over discretionary, with minimarts still driving growth,” it said.

Beyond retail, CLSA also cited SMIC’s synergies across its portfolio, noting SM Prime’s record earnings and expanding mall network as well as BDO’s financial services as key growth drivers.

“We forecast that the retail segment will benefit from the widening presence of SM Prime, which in turn could boost BDO’s loan base and current account/savings account. Likewise, we expect the indispensable nature of the retail business’ products to increase foot traffic in malls and cater to upscale lifestyle,” CLSA said.

Aside from market-leading businesses in retail, banking and property, SMIC also invests in ventures that capture high growth opportunities in the emerging Philippine economy.

SMIC is expected to spend as much as P115 billion again for its capital expenditures this year to support its growth initiatives.