LT Group Inc. sees capital spending this year to reach P9.7 billion nearly double than last year’s P5 billion.
Philippine National Bank (PNB) will get the biggest share of P4.6 billion, followed by Eton Properties Corp., with P2 billion; Tanduay Distrillers Inc., P1.5 billion. The joint-venture between Eton and Ayala Land Inc. , P1 billion; and Asia Brewery Inc., P700 million.
At the company’s stockholders meeting Tuesday, Michael Tan, LT Group president, said while 2021 is expected to be tough, “it will hopefully be better than 2020.”
Tan said LT Group has secured enough vaccines for the over 50,000 employees and service providers as well as for their families.
“LT Group expects the demand for consumer goods, those of Tanduay Distillers and Asia Brewery, to show some volume growth or at least remain steady. But the volume of Philip Morris Fortune Tobacco Inc. (PMFTC) products might still be impacted, as price increases are needed to pass on the annual increase in excise taxes, the last of which was in October 2020,” said Tan.
“PNB will see some more NPLs booked as Bayanihan 1 and 2 that provided a grace period for borrowers ended in 2020, but a better economy should pave the way for the need of more loans. Eton Properties Philippines, with most of its leasing portfolio in office space will not be as affected as other developers who are more reliant on retail space,” he added.
