SM Prime Holdings , the Philippines’ largest mall developer, said on Tuesday net profit in the first quarter was up an annual 7 percent, a slower pace from last year’s double digit growth as rising inflation crimps consumer spending. 

‘SM Prime continued to exhibit growth in the first quarter amid a more challenging environment,’ company president Hans Sy said in a statement.

Net profit in the first quarter of 1.6 billion pesos (US$ 38 million) came on the back of an 8 percent rise in gross revenues mainly due to three new malls, which were opened last year. 

SM Prime’s net profit last year climbed 10 percent.

This year, SM Prime is expected to open another three new shopping centres, bringing its total number of malls to 33.