MANILA —The SM Group said it is approaching the coming year with cautious optimism, amid the continued growth of the Philippine economy despite headwinds such as the peso's volatility and high inflation.

The Philippines' largest conglomerate noted that household spending remained consistent in the third quarter, with Household Final Consumption Expenditure posting a year-on-year growth of 5.1 percent.

SM Investments President and CEO Frederic C. DyBuncio said that the business sector has adapted well and that any moderation in inflation should trigger a strong confidence rebound.

"This could create opportunities in consumer-focused sectors in the country and we are poised to cater to these evolving demands,” DyBuncio said.

To cater to growing demand, SM said it continues to expand into more underserved areas to enhance access to modern retail, financial services, and integrated property developments.

“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,” DyBuncio said.

Aside from retail and property, SM also has stakes in renewable energy. The conglomerate has invested clean energy industry through the Philippine Geothermal Production Company (PGPC) which produces 300 Megawatts of geothermal steam supply.

"To encourage circularity towards green energy production, SM’s property arm, SM Prime Holdings partnered with GUUN Co. Ltd. (GUNN) to implement the Japanese technique of reducing landfill impact. The technology converts non-recyclable and hard-to-recycle packaging into alternative fuel," SM said.

BDO Unibank is also a major funder of renewable energy projects with loans to 59 clean energy projects as of December 2023.

In logistics and tourism, SM said its subsidiary 2GO launched MV Masigla and MV Masikap in 2024 to help better connect goods to 19 ports across the country including Iloilo, Bacolod, Cagayan de Oro and Manila.

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

SM Investments booked a consolidated net income of P60.9 billion in the first nine months of 2024, up 9 percent from the same period last year. Its consolidated revenues also grew by 5 percent to P462.5 billion.