LT Group Inc. (LTG) has expressed a guarded outlook for 2020 amid the challenges posed by the new coronavirus disease (COVID-19) pandemic.
Michael Tan, LTG president, said the effects of COVID-19 were already felt in the first quarter of the year, starting mid-March when the government imposed the enhanced community quarantine (ECQ).
“Some plants were not allowed to operate when ECQ was declared as the products were considered non-essential. Sari-sari stores that play a big role in reaching consumers were closed in some areas. There were also liquor bans declared by some local government units,” he said.
Tan noted the government estimates that the economy will contract by 2 percent in 2020.
“But some economists expect a higher deceleration. With purchasing power affected, demand for consumer goods is expected to be weak, and will affect the sales volumes of the products of PMFTC Inc., Tanduay Distillers Inc. and Asia Brewery Inc.,” Tan said.
He added Eton Properties Philippines Inc. will also be affected as some tenants may end their lease contracts while demand for residential units will be weak.
“Philippine National Bank will have to contend with higher non-performing loans as well as slower demand for loans,” Tan also said.
