LT Group allots P9.7 billion CAPEX to keep growth, cope with COVID-19
MANILA – The LT Group, Inc. (LTG) will set aside P9.7 billion for its capital expenditures program this year which is a 50% increase from last year’s P4.94 billion.
In a statement, the LT Group said the Philippine National Bank (PNB) will get most of the amount, P.4.6 billion for its digitalization program. Eton Properties Philippines, Inc. (Eton) will receive P2 billion as it continues its construction activities due to the COVID-19 pandemic last year.
Asia Brewery, Inc. (ABI) will receive P700 million, Tanduay Distillers, Inc. (TSI) with 1.5 billion to upgrade its plants and ALI-Eton joint venture, will receive P 1 billion.
At the Annual Stockholders Meeting today, LTG President and Chief Operating Officer Michael G> Tan said although 2021 will remain touch, “it will hopefully be better than 2020.”
The Enhanced Community Quarantine in Metro Manila and nearby provinces since March will affect the projected GDP growth of between 6.5% to 7.5% for 2021, that was announced earlier this year. However, this will still be reversal from the 9.5% contraction in 2020. The ECQ has been downgraded to MECQ recently.
The LTG hopes despite the slow start this year, with the vaccination program and the private sector up to start a bit later, the economy can open up as more people get inoculated and businesses may operate at efficient levels and provide more work.
The LTG has purchased vaccines for more than 50,000 of its employees and service providers. Family members have also been provided access to the vaccines.
LTG expects the demand for consumer goods, from TDI and ABI, to show some volume growth or remain steady. PNB will see more Non-Performing Loans (NPLs) booked as Bayanihan 1 and 2 that provided a grace period for borrowers ended in 2020, but a better economy should encourage more loans.
Eton, according to the statement, with most of its leasing portfolio in office space will not be as affected as other developers who are reliant on retail spaces.
It will be recalled the LT Group, Inc. (LTG) reported an unaudited attributable net income last year amounting to P21.02 billion which was P2.10 billion or 9.12% lesser than the P23.12 billion reported for 2019.
Publicly-listed Philippine National Bank (PNB) contributed P1.55 billion or 7% of the total attributable income. The tobacco business accounted for P16.83 billion or 80% of the total income.
Tanduay Distillers, Inc. (TDI) contributed P1.10 billion or 5% while Eton Properties Philippines, Inc., (ETON) accounted for P799 million or 4% while Asia Brewery, Inc. (ABI) added P583 million or 3%.The 30.9% stake in Victorias Milling Company, Inc. (VMC) added P264 million or 1% to the Gr