SMIC allots up to P115 billion for 2024 expansion plans

THE SY family’s SM Investments Corp. (SMIC) has allocated up to P115 billion for its capital expenditure (capex) budget this year to support the conglomerate’s expansion plans.

“Our spent capex in 2023 was about P80 billion. The projection this year for the group, that excludes the banks, it’s around P110 to P115 billion (in capex) more or less,” SMIC Senior Vice-President for Finance Franklin C. Gomez said dur-ing a briefing on Wednesday.

“The biggest driver of that is clearly SM Prime Holdings, Inc. They’ve been very public with their intention to spend around P100 billion this year. They will be the biggest component of our capex,” he added.

SMIC President and Chief Executive Officer Frederic C. DyBuncio said the conglomerate maintains a cautiously optimistic outlook for 2024.

“We will continue to invest in growth in the Philippines and we are committed to being a catalyst for responsible development. We have a young, dynamic, higher-earning population who will help support and drive economic activity,” he said.

“Our strategy is to continue to expand coverage nationwide to create new markets that improve access to these sector and provide more opportunities for underserved areas,” he added.

SM Prime is opening four new malls this year, one in Metro Manila and three in provincial areas.

SM Development Corp. is eyeing to roll out 8,000 to 10,000 residential units this year in the northern part of the Philippines and across Visayas and Mindanao.

The conglomerate’s minimart grocery format Alfamart is also eyeing to add at least 400 stores this year.

Meanwhile, SMIC’s banking unit, BDO Unibank, Inc., is aiming to expand coverage, with BDO and BDO Network Bank planning to increase branches by a combined 100 to 120 this year.

The conglomerate is also eyeing to expand its portfolio investments.

After its acquisition of the Philippine Geothermal Production Co., SMIC is set to explore new steam fields in Northern and Southern Luzon to double the company’s current steam production of 300 megawatts within the medium term.

On Wednesday, SMIC shares rose by 0.42% or P4 to P947 per share. — Revin Mikhael D. Ochave