SM Investments needs to adapt, says Tetangco

SY family-led SM Investments Corp. will need to adapt to changes in market conditions amid the global uncertainties brought about by US President Donald Trump's reciprocal tariffs, a top executive said.

SM Investments Chairman Amando Tetangco Jr. told stockholders at the company's annual general meeting on Wednesday that the company would need to position itself to meet changing demands.

"[T]he company, the core businesses — in particular retail, banking, property — are closely tied to the domestic economy and the everyday needs of Filipinos. As consumption patterns continue to evolve... we need to position ourselves to meet new demands," said Tetangco, who is also a former governor of the Bangko Sentral ng Pilipinas.

He highlighted the Philippine economy's sound economic fundamentals as shown by its continued gross domestic product growth, declining inflation and robust consumer demand, supported by resilient remittances from overseas Filipinos.

Tetangco underscored that the 1.8-percent inflation print in March this year and the 2.2-percent rate for the first three months of 2025 were already at the lower end of the government's inflation target range of 2 percent to 4 percent for the full year.

He further noted that consumption accounted for more than 70 percent of the country's economy, while exports of goods took up only about 15 percent to 16 percent and manufacturing accounts less than 30 percent. This economic structure, he said, "gives us a certain amount of protection."

"We are less vulnerable, we will be less open than other countries, but in this, this current environment... [it] provides us some insulation from potential adverse effects from external economies," Tetangco explained.

He said the SM Group would remain flexible amid the shifting conditions to protect its long-term growth.

"We remain conscious that the environment is changing, and we should be aware of the changes, both in terms of what is happening on the trade side, as well as what is happening on the market side — you know, the markets that we serve," he said.

Meanwhile, at the same annual stockholders' meeting, SM Investments named Marife Zamora as independent director succeeding Tomasa Lipana, who has completed the maximum term for the post.

Zamora joined lawyer Lilly Gruba as the firm's second female independent director.

"SM mirrors the energy and growth journey of the Philippine economy. I look forward to contributing to a growing company deeply committed to independence and strong corporate governance," Zamora said in a statement.

In addition, SM Investments announced the declaration of a regular and special cash dividends totaling P15.888 billion. This is equivalent to P13 per share, comprising a regular dividend of P11 per share and a special dividend of P2 per share.

The latest dividend declaration is 44 percent higher than the P9 per share dividend declared in 2024.

Stockholders of record as of May 16, 2025 will receive the dividends on May 29, 2025.

SM Investments shares on Wednesday rose P15, or 1.75 percent, to P870 apiece as the benchmark Philippine Stock Exchange index advanced by 1.64 percent.