In recent interviews with CNBC and Bloomberg, Erwin G. Pato, executive vice president for treasury, finance, and planning, outlined SM’s investment strategy amid expectations of sustained consumer spending and favorable macroeconomic conditions.
He emphasized that with 70 percent of the country’s economy driven by consumption, SM’s businesses in retail, property, and financial services are well-positioned to benefit from the trend.
What was said during the interview
“We're having this buyback because we believe in our company and its growth potential,” explained Pato.
“We believe that growth in the Philippines will continue to be consumption-driven,” he added. “Seventy percent of our gross domestic product (GDP) is consumption-driven, and our business is right within that footprint. Our offerings in retail, integrated property development, and financial services will continue to be key players in this consumption-driven growth,” he added.
Corporate profits driven by consumption
The company’s net income rose 7 percent in 2024 to P82.6 billion, while SM Retail Inc. posted P20.9 billion in earnings, reflecting continued demand.
To support this growth, SM Prime Holdings Inc., the group’s property arm, is allocating P100 billion for mall, residential, and commercial expansions, betting on rising corporate activity and consumer confidence.
