SM group says rapid growth to continue
MANILA, Philippines–The flagship firm of the SM conglomerate expects to remain on a steep growth path over the medium term even as rival business groups ease off the investment gas pedal ahead of the 2016 presidential elections.
In an interview with the Inquirer, SM Investments Corp. vice chair Teresita Sy-Coson said the P711-billon holding firm sees a steady rate of expansion even with the uncertainty in the business climate that the end of the Aquino administration is expected to bring.
“The group’s growth will continue as long as the main drivers of the Philippine economy continue to do well,” she said.
In particular, she pointed out that the retail, banking and real estate conglomerate was counting on the continued strength of the country’s business process outsourcing (BPO) industry and the billions of dollars sent home every month by overseas Filipino workers.
“As long as both sectors are strong, our country and our group will continue to benefit,” she said, explaining that the positive developments in the BPO industry and OFW remittances translated directly into revenues for the SM group’s main businesses, especially the consumption-related mall industry.
More importantly, the SM vice chair predicted that the group would likely stay immune from the uncertainty in the business climate that next year’s national elections would bring, as the change in administrations was expected to leave these two growth engines of the Philippine economy unaffected.
Article continues after this advertisementSMIC is one of the biggest listed firms on the Philippine Stock Exchange with a market capitalization of P649 billion. It reported P275 billion in revenues and a net income of P28.4 billion for 2014.
It is involved in banking through BDO Universal Bank (the country’s biggest financial group) and China Banking Corp.; the property business through SM Prime Holdings Inc. and SM Development Corp.; and the retail business through SM Retail, the largest chain of department stores in the country. It also has interests in the leisure and mining businesses.
