SMIC eyes long-term growth via consumption-driven strategy
SY-LED SM Investments Corp. (SMIC) said consumption will drive the conglomerate’s long-term growth plans, led by its core businesses in the property, banking, and retail sectors.
“The Philippine economy remains consumption-driven, and SMIC is well-positioned to support and capture this demand. Our strong ecosystem — spanning retail, banking, and property — enables us to navigate challenges while delivering long-term value,” SMIC President and Chief Executive Officer Frederic C. DyBuncio said in an e-mail statement on Tuesday.
Citing a report by equity research firm CLSA, SMIC said its retail segment is poised to benefit from minimum wage increases, sustained remittances, and consumer spending resilience despite macroeconomic uncertainties.
CLSA also said that wage adjustments and higher remittances are projected to support household spending, particularly in essential categories.
“We anticipate spending behavior to continue to favor staples (essential items) over discretionary, with minimarts still driving growth,” it said.
SMIC said its minimart chain Alfamart aims to sustain expansion this year. Since its first store in 4, Alfamart increased its store count to 2,100, mainly in Luzon and Metro Manila.
“We continue to see strong demand for essentials, with minimarts playing an essential role in serving everyday consumer needs,” Mr. DyBuncio said.
CLSA also noted SMIC’s synergies across its portfolio, particularly the earnings and mall network of real estate unit SM Prime Holdings, Inc. and the financial services of BDO Unibank, Inc.
“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,” Mr. DyBuncio said.
SM Prime currently has 87 malls in the Philippines, with planned expansion towards the provinces to meet demand in Northern Luzon, Visayas, and the progressive cities in Mindanao.
Last week, SM Prime announced that it is allocating up to P33 billion this year for the expansion and development of its commercial real estate portfolio, with some P21 billion to increase the gross floor area of the malls business.
SMIC shares rose by 0.13% or P1 to P794 apiece on Tuesday. — Revin Mikhael D. Ochave
