SM Investments Corp. (SMIC) of the Sy family said Wednesday it is spending between P110 billion and P115 billion this year primarily to support the expansion of its property and retail businesses.
SMIC senior vice president for finance Franklin Gomez said in a news briefing following the company’s annual stockholders meeting said the 2024 capital expenditures would be higher than P80 billion thje group spent in 2023.
Gomez said the group would allocate the bulk of this year’s spending for its property unit SM Prime Holdings Inc. at P100 billion.
The balance will go for the expansion of its retail unit which seeks to open 400 Alfamart stores, SM’s minimart grocery format, and 100 department stores, supermarkets and specialty stores this year.
SMIC’s banking arm BDO also continues to expand coverage nationwide as it intends to open 100 to 120 branches this year.
Most of the group’s expansion plans are also geared towards the provincial areas where growth is much faster compared to the National Capital Region.
Gomez said while headwinds in the market remain, the group continues to invest in its businesses, which still have significant room for growth.
SMIC is also investing in emerging sectors through projects such as its commitment to supporting clean energy sources.
Following its acquisition of the Philippine Geothermal Production Company (PGPC), the conglomerate is set to explore new steam fields in Northern and Southern Luzon with the aim to double the company’s current steam production of 300 megawatts within the medium-term.
Its logistics business 2GO Group Inc. is on course in providing seamless logistics solutions with the addition of its two new ships.
Airspeed, another SMIC-owned logistics company, is also keen on expanding its distribution facilities in key cities, along with opening more kiosks and collaborations with service providers to offer better customer options, wider network and quicker delivery times.
“We expect our core businesses to continue its growth trajectory. Additionally, we anticipate that our portfolio investments will contribute significantly to our overall performance in the medium-term as these are well-positioned to capture opportunities in high growth sectors,” said SMIC president and chief executive Frederic DyBuncio.