PASAY CITY, Philippines, February 11, 2025 – SM Investments Corporation (SM Investments) remains optimistic about its long-term growth, driven by a strong consumer-focused economy, synergies across its business segments, and solid consumer fundamentals.

According to a recent report on Philippine conglomerates by equity research firm CLSA, SM’s retail division is well-positioned to benefit from rising minimum wages, steady remittances, and resilient consumer spending despite economic uncertainties.

“The Philippine economy continues to be fueled by consumption, and SM Investments is strategically positioned to meet this demand. Our integrated ecosystem—spanning retail, banking, and property—allows us to overcome challenges while creating long-term value,” said SM Investments President and Chief Executive Officer Frederic C. DyBuncio.

CLSA highlighted that wage increases and higher remittances, supported by a weaker peso, are expected to bolster household spending, particularly in essential goods. While consumer spending habits may shift, CLSA asserts that overall consumption will remain a key economic driver.

“We see SM Investments as largely resilient and an attractive investment opportunity given its valuation. The company benefits from a consumption-led economy,” stated Joyce Anne Ramos, an equity analyst at CLSA. “We expect consumer spending to prioritize essential goods over discretionary items, with minimarts continuing to drive growth,” CLSA added.

SM’s minimart chain, Alfamart, is set to expand further this year. Since opening its first store in Trece Martires, Cavite, in 2014, Alfamart has grown to 2,100 locations over the past decade, primarily in Luzon and Metro Manila.

“We continue to witness strong demand for essential goods, with minimarts playing a crucial role in meeting consumers’ daily needs,” added Mr. DyBuncio.

Beyond retail, CLSA emphasized the strategic synergies within SM Investments’ portfolio, citing SM Prime’s record earnings and expanding mall network, alongside BDO’s financial services, as key growth drivers.

“We anticipate that the retail sector will gain from SM Prime’s expanding presence, which could also enhance BDO’s loan portfolio and current account/savings account base. Additionally, the indispensable nature of retail products is expected to drive mall foot traffic and cater to upscale lifestyles,” CLSA stated.

In 2024, SM Prime Holdings inaugurated two malls in North Caloocan and J Mall in Mandaue City, Cebu. Currently, SM Prime operates 87 malls across the Philippines, with future expansions focusing on provincial areas, covering Northern Luzon, Visayas, and emerging cities in Mindanao.

With a strong financial foundation, strategic business integration, and a commitment to sustainable growth, SM Investments remains dedicated to driving economic progress and delivering long-term value to investors, customers, and communities.

“Our businesses complement each other—our expanding retail presence increases mall traffic, while BDO’s financial solutions support both consumption and business growth. These synergies enhance our resilience and create shared value for our stakeholders,” Mr. DyBuncio concluded.

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About SM Investments Corporation
SM Investments Corporation is a leading Philippine conglomerate engaged in market-leading businesses in retail, banking, and property. It also invests in high-growth ventures within the evolving Philippine economy.

SM’s retail operations represent the most extensive and diversified network in the country, including grocery stores, department stores, and specialty retail outlets. Its property arm, SM Prime Holdings, Inc., is the Philippines’ largest integrated property developer, with investments in malls, residential communities, office spaces, hotels, convention centers, and tourism-related properties. In banking, SM has significant stakes in BDO Unibank, Inc., the country’s largest bank, and China Banking Corporation, the fourth-largest private domestic bank.

For more information, please visit www.sminvestments.com

For inquiries, please contact: smic_corpcomm@sminvestments.com