SM Prime sees expansion opportunities despite headwinds

SM PRIME HOLDINGS, Inc. said it sees potential growth opportunities this year despite a challenging economic outlook.

“We’re very positive despite the current situation. You know us. We’ve been trained. The more challenging, the more opportunities there are to expand,” SM Prime Executive Committee Chairman Hans T. Sy told reporters last Friday.

While he expects a “challenging” year for the country’s economy, secondary effects, such as a weak peso, could present growth opportunities for the company’s retail business.

“Even with the weakness of the peso, that means more OFW (overseas Filipino worker) money coming in. That means more opportunity,” Mr. Sy said.

The peso on Jan. 15 closed at a record low of P59.46 per dollar. It first breached the P59 level on Oct. 28, 2025, and analysts forecast it could slide further, possibly exceeding P60, following the flood control scandal.

Although SM Prime’s retail sales have benefited from the weaker local currency, Mr. Sy noted that other sectors could face negative impacts.

“With the weakness of the peso, our retail sales are actually improving. You can see the improvement. But, on the other hand, I’m a bit worried about the future. I don’t know how much impact it will have on other businesses, because if other businesses are affected, it’s not going to be good for the economy,” he said.

He added: “So, we’ll watch it very closely to see how the government reacts to it. But, as far as the private sector is concerned, this is the opportunity to increase your market share.”

Mr. Sy also sees potential growth for SM Prime in renewable energy but emphasized the need to observe how government support develops amid fiscal and spending issues.

“We’re quite open, but we also have to see how the government supports this as well. As you know, there’s a big controversy going on in this area. We’re watching it, too. But hopefully, it’s not as bad, so we can really support it,” he said.

He added that he is monitoring the “big, bold reforms” planned by the government, aimed at restoring investor confidence following a widening corruption scandal involving state infrastructure projects.

“I’m not going to say if I’m optimistic or pessimistic about it, but I’m watching it closely, especially after what happened last year with the flood control issues,” Mr. Sy said.

SM Prime’s net income rose 8.07% year on year to P13.01 billion in the third quarter of 2025 from P12.04 billion, bringing nine-month profit to P37.89 billion, up 9.66% from P34.55 billion in the same period in 2024.

On Monday, shares of SM Prime Holdings fell 25 centavos, or 1.1%, to close at P22.55 each. — Aaron Michael C. Sy