SM Investments Corp. expects slowing inflation to boost consumer demand in 2025, which it said could create opportunities in the Philippine retail sector.
“Any moderation in inflation should trigger a strong confidence rebound,” SM President and Chief Executive Officer Frederic C. DyBuncio said in a statement on Thursday. “This could create opportunities in consumer-focused sectors in the country, and we are poised to cater to these evolving demands.”
He said the business sector has adapted well despite inflation and the peso’s volatility against the dollar.
Household spending rose 5.1% in the third quarter, according to data from the local statistics agency. Inflation quickened to 2.5% in November as prices of vegetables, meat, and fish rose due to a series of typhoons.
The peso sank to an all-time low of P59 against the dollar on Dec. 19, though it has since recovered. It closed at P57.97 a dollar on Thursday, 48 centavos stronger than its P58.45 finish on Monday, according to Bankers Association of the Philippines data posted on its website.
To meet growing demand, Mr. DyBuncio said SMIC continues to expand to underserved areas. He added that the company continues to contribute to sustainable economic development and collaborate with the government to improve access to modern retail, financial services, and integrated property development.
“By investing and expanding to more areas nationwide, SM creates new markets and improves access to these essential sectors, serving more communities and helping stimulate sustained economic activities,” Mr. DyBuncio said.
Meanwhile, the group continues to invest in renewable energy and logistics, he added.
SM has invested in the clean energy sector via Philippine Geothermal Production Co., which produces 300 megawatts of geothermal steam supply.
SM aims to continue to develop geothermal concessions through Philippine Geothermal in support of the Energy department’s goal of reaching 50% renewable energy supply by 2040.
The holding company’s property unit, SM Prime Holdings, Inc., has partnered with GUUN Co. Ltd. to implement a technology that converts nonrecyclable and hard-to-recycle packaging into alternative fuel.
SM’s consolidated net income grew 9% to P60.9 billion in the first nine months as revenue increased 5% to P462.5 billion.
SM shares dropped 2% or P18 to P882 each. — Revin Mikhael D. Ochave