SM expects rebound in consumer demand in 2025

SM Investments Corp. president and CEO Frederic DyBuncio

Demand in the consumer sector will likely rebound in 2025 and boost the earnings of the country’s largest conglomerate, especially if inflation continues to ease.

SM Investments Corp. president and CEO Frederic DyBuncio said in a statement on Thursday that the business sector was able to “adapt well” despite the local currency’s volatility and higher inflation in 2024.

With inflation expected to cool next year, DyBuncio expressed optimism that this could bode well for the consumer and retail sectors.

“This could create opportunities in consumer-focused sectors in the country, and we are poised to cater to these evolving demands,” he added.

READ: SM Investments nets P60.9B

Data from the Philippine Statistics Authority show that household consumption grew by 5.1 percent in the third quarter, buoyed by miscellaneous goods and services, food and nonalcoholic beverages, and restaurants and hotels.

This has prompted experts to slightly raise their projection for the country’s growth in 2025, alongside better inflation prospects.

In the case of SM Investments, DyBuncio noted they wanted to expand and invest more in underserved areas across the country to serve demand.

According to him, this would allow SM to “create new markets and improve access to these essential sectors, serving more communities and helping stimulate sustained economic activities.”

“Our focus for 2025 will be to drive purposeful growth, empowering communities and partners through our investments toward a sustainable future,” DyBuncio said.

The Sy family-led conglomerate, which has interests in retail, real estate, banking and more recently, renewable energy, currently holds the record for the highest full-year earnings in Philippine corporate history.

Record-breaking income

In the first nine months of 2024, SM Investments booked a 9-percent gain in net income to P60.9 billion, with half coming from its banking business alone as interest rates and inflation eased.

Revenues during the period also inched up by 5 percent to P462.5 billion.

SM Investments’ nine-month net income is equivalent to 79 percent of its record P77 billion 2023 full-year earnings that it is expected to shatter this year.

Banking under BDO Unibank Inc. and China Banking Corp. accounted for the biggest share of the net income pie at 50 percent. Property contributed 27 percent; retail, 15 percent; and portfolio investments, 8 percent.

Real estate under SM Prime Holdings Inc. earlier projected to breach its full-year earnings record of P40 billion, citing a good performance in the third quarter.

Next year, SM Prime plans to spend up to P110 billion to expand its domestic mall business, which remains its main income driver. INQ