SM: Still plenty of room for growth in 2024
PASAY CITY, Philippines, Jan. 31, 2024 /PRNewswire/ -- SM Investments Corporation, one of the country's leading conglomerates, says there is still room for growth with the Philippines consistently showing consumer growth.
"Even during the height of the Asian crisis, household consumption in the Philippines has been quite resilient, primarily driving sustained economic growth," SM Investments President and Chief Executive Officer Frederic C. DyBuncio said.
Discretionary spending in key categories such as fashion, food and beverage as well as entertainment, among others, is buoying consumption activity.
"We are positive about our retail business, and we continue to be mindful of our customers' needs as we offer choices that can match the size of their wallets," Mr. DyBuncio said.
Substantial remittances from Overseas Filipino Workers (OFWs) are also supporting the consumption story of the Philippines. Adding fuel to consumption growth is BPO expansion and improving unemployment numbers. Many BPO firms have been moving to the provincial areas providing additional spending power to a young population.
SM is expanding largely in provincial areas which present opportunities for establishing modern retail formats in a significantly underpenetrated sector.
Over 80 percent of SM's new retail stores are located outside of Metro Manila. Mall expansion is also geared towards the provinces.
Housing also presents a huge opportunity. SM Development Corporation (SMDC), SM's residential arm, has a growing presence in the provinces strategically near SM's malls and transportation terminals.
In banking, BDO Unibank and its community banking arm BDO Network Bank continue to provide relevant financial solutions to address unique banking needs in the provinces. For communities in remote areas without traditional bank branches, BDO Cash Agad allows convenient access to funds for daily expenses, emergencies, or business needs.
SM invested in high growth sectors such as in logistics through 2GO, the largest transportation and logistics provider in the country and Airspeed, an end-to-end logistics solutions and express courier company which are both well positioned to meet various economic needs.
In the race to clean energy, SM is invested in renewable energy supply through geothermal firm Philippine Geothermal Production Company in support of the country's growing advocacy for green energy and sustainable development.
"Investors view us as a proxy because all of SM's businesses touch the daily lives of millions of Filipinos."
SOURCE SM Investments Corporation
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