Forbes Asia - October 2018

SPECIAL ADVERTISING SECTION

The Philippines 6

Delivering Shareholder Value
SM is further energized to increase nation-
wide penetration by integrating more
investments into its core businesses. “We
continue to invest in opportunities to cre-
ate value and growth,” says DyBuncio, add-
ing that the company’s total assets grew by
11.4% to PHP960.1 billion (US$19.04 billion)
in 2017.
Even amid the Philippines’ inflationary
concerns, the SM group continues to see
retail and property among the brightest
spots in the Philippines, opening seven
new malls outside Metro Manila, two THE
SM STOREs, four SM Supermarkets, 28 Save-
more stores, three SM Hypermarkets, seven
Walter Mart stores and 159 specialty stores
in 2017. Retail revenue grew 7.3% last year
to PHP297.4 billion (US$5.9 billion), while
property grew by 13.9% to PHP90.9 billion
(US$1.8 billion) on the back of strong resi-
dential sales and increased mall revenue.
Both BDO and China Bank also recorded
exceptional achievements last year—BDO
posted a record net income of PHP28.1

billion (US$557.5 million) while China Bank

registered consolidated net income of

PHP7.5 billion (US$148.8 million)—anchored

on sustained network expansion, focused

customer service and robust business

strategies.

Beyond the organic growth of its core

businesses, DyBuncio says, “We’re always on

the lookout for growth opportunities and

ensure we constantly innovate to keep up

with the ever-changing market. We keep our

ears close to the ground and transform with

the changing marketplace.”

Further bolstering expansion have been

equity investments in high-growth potential

companies, including a 30.5% stake in lead-

ing Philippine end-to-end logistics solutions

provider 2GO Group and a 61.2% holding in

dormitory provider to young urban profes-

sionals, Philippines Urban Living Solutions.

“These companies cater to huge and

underserved customer bases, offering dif-

ferentiated business models, competitive

advantages and strong synergies with our

businesses,” says DyBuncio. “We expect

these investments to fuel higher growth in

2018 and should complement solid returns

across the group. We intend to help them

grow and to look for more emerging sector

investment opportunities like these.”

Amid aggressive growth plans, 2017 also

marked strategic transitions in SM’s top lead-

ership, with DyBuncio succeeding as presi-

dent and Jose Sio as chairman. In a message

to SM’s shareholders, founder and Chairman

Emeritus Henry Sy Sr. affirms the movement

“further enhances professionalization within

the group in preparation for the future,” and

that as the conglomerate journeys toward

its centennial, he remains “optimistic about

the medium- and long-term growth poten-

tial of SM through investments in addition

to the company’s core businesses.”

China Bank SM Markets

FiveE-com Center Field Residences SM City Puerto Princesa

http://www.sminvestments.com