GT Capital Holdings Inc. is spending P51.7 billion this year to support the growth of core subsidiaries in the banking, automotive and property businesses while looking for new opportunities.
GT Capital chief finance officer Franciso Suarez Jr. said during a recent investors’ briefing the conglomerate would spend the bulk of the spending, approximately P27.8 billion, at the parent level. The group plans to invest in automotive value chain and new business opportunities.
Suarez said the conglomerate had been evaluating offers for possible investments. He did not disclose the new investment opportunities.
The group is spending P12 billion for the expansion of real estate unit Federal Land Inc., which plans to launch eight new projects this year. Suarez said the new projects would have a total sales value of P15 billion.
The group’s automotive unit, Toyota Motor Philippines, is spending P6.8 billion in capital expenditures for 2019 primarily to fund the launching of new car models and logistics acquisition. GT Capital expects automotive sales to increase by seven to nine percent this year.
The group’s affordable housing arm, Property of Friends Co Inc. (Profriends), will also spend P2.3 billion this year for land development as well as construction of commercial and retail projects.
GT Capital’s banking unit Metropolitan Bank & Trust Co. will spend P2 billion this year for IT systems upgrade, expansion of electronic banking channels, ATM installations and renovation and relocation of branch premises.
The conglomerate will spend the balance for other subsidiaries, namely Toyota Financial Services Philippines Corp., AXA Philippines, Toyota Manila Bay Corp. and Sumisho Motor Finance Corp.
GT Capital will fund this year’s capital spending from internally generated funds and bank borrowings.
The conglomerate reported a six-percent decline in net income attributable to equity holders of the parent company to P13.39 billion in 2018 from P14.18 billion in 2017 on lower revenues.
Consolidated revenues dropped 10 percent to P215.8 billion in 2018 from P239.8 billion in 2017 mainly due to lower sales from the automotive business. Jenniffer B. Austria