Wednesday, May 29, 2024

NewsHorizon

Where your horizon expands every day.

Business

Tetangco stated that SM Investments is optimistic about continued expansion.


LISTED holding firm SM Investments Corp. (SMIC) is optimistic about sustaining growth for the remaining months of the year due to increased consumer spending, according to its chairman.

“The growth is expected to persist, especially with the approaching holiday season. According to SMIC Chairman Amando M. Tetangco, Jr., the latter part of the third quarter and fourth quarter are typically strong periods. He made this statement while attending a conference hosted by the Financial Executives Institute of the Philippines in Pasay City last week.”

“The strong performance is expected to persist. As the economy reopens, we have witnessed a rebound over the past 18 months. We believe that with the ongoing growth of the economy, this will further bolster the expansion of the SM group’s operations,” stated Mr. Tetangco, referring to the company’s future prospects.

Per Mr. Tetangco, SMIC’s growth will continue to be driven by its primary operations in retail, banking, and property industries.

Mr. Tetangco stated that the three main businesses are all progressing positively.

According to Mr. Tetangco, a previous head of the central bank, SMIC’s main challenge for the rest of the year will be managing the impact of rising inflation.

The inflation rate in the country rose to 6.1% in September, up from 5.3% in August, primarily due to a significant increase in the price of rice.

“The issue could potentially be how customers respond to increased inflation. We are aware of this and we are constantly striving to improve our service to both our customers and clients, especially during this time of rapidly rising prices,” stated Mr. Tetangco.

“We are finding ways to address that and see what products and how these products can be brought to the market so that we can remain competitive and we can continue to come up with steps that would benefit our consumers,” he added.   

Mr. Tetangco mentioned that SMIC is currently seeking ways to enhance their company’s portfolio, but he did not specify any specifics.

The company’s investment portfolio includes holdings in Atlas Consolidated Mining and Development Corp., Belle Corp. real estate development, Goldilocks bakeshop, and Philippine Geothermal Production Co.

“Our main focus is to identify potential opportunities that will allow for future growth. This strategy remains consistent as we actively seek out possibilities that align with our overall approach and contribute to the development of the SM Group ecosystem,” stated Mr. Tetangco.

SMIC reported a 32% rise in its net income for the first half of the year, reaching P36.5 billion compared to P27.7 billion in the previous year, driven by increased revenues.

On Monday, shares of SMIC at the local bourse fell P3 or 0.36% to P830 each. — Revin Mikhael D. Ochave