Conglomerate GT Capital Holdings Inc. of the Ty Group will spend between P28.5 billion and P30.5 billion this year mainly to support the expansion of its real estate, banking and automotive businesses and finance possible acquisitions.
GT Capital said in a regulatory filing over the weekend it would allot P12 billion for acquisitions and investments and some P7.5 billion for land banking and project development of real estate unit Federal Land Inc.
The group’s automotive arm, Toyota Motor Philippines Corp., meanwhile is expected to spend P4.9 billion to fund new model launches, upgrade and special projects, while banking arm Metropolitan Bank & Trust Co. would invest P3 billion to P5 billion in information technology.
GT Capital will earmark the balance to other units, including Toyota Manila Bay Corp., Sumisho Motor Finance Corp., Toyota Financial Services Philippines Corp. and Philippine AXA Life Insurance Corp.
GT Capital last week reported that net income attributable to equity holders of the parent company increased by 54 percent in 2029 to P20.31 billion from P13.16 billion in 2018.
The company’s 2019 net income was boosted by higher sales from automotive business as well as disposal of its investment in real estate unit Property Company of Friends,Inc. (Pro-Friends). Core net income also jumped 22 percent to P15.8 billion.
Consolidated revenues rose also eight percent in 2019 to P222.9 billion from P205.8 billion the previous year.
The increase in revenue came from auto sales of Toyota Motor Philippines Corp. and Toyota Manila Bay Corp., which stood at P192.9 billion, up eight percent from a year ago.
The net sales of associates and joint venture increased 27 percent to P14.58 billion, accounting for seven percent of the total revenues.
Federal Land posted a seven-percent decline in sales to P9.84 billion.
GT Capital in July obtained the approval of the Philippine Competition Commission to dispose of its 51-percent stake in Pro-Friends and 702 hectares of real estate properties mostly located in Lancanster New City in Cavite worth P20 billion.
The deal enabled GT Capital to post a net gain of P2.3 billion.