Connect with us

Hi, what are you looking for?

Economy

Tan’s LT Group earmarks nearly P10B for capex

THE company also set some P1 billion for ALI Eton Property Development Corp. — AYALALAND.COM.PH

By Keren Concepcion G. Valmonte

LUCIO C. Tan’s LT Group, Inc. (LTG) is allocating P9.7 billion for capital expenditures (capex) this year, nearly double the previous year’s P5-billion budget as the company expects the slow opening of the economy to “bode well for all businesses in general.”

The listed holding firm is formed by Tanduay Distillers, Inc. (TDI), Asia Brewery, Inc. (ABI), Fortune Tobacco Corp., PMFTC, Inc., Eton Properties Philippines, Inc., Philippine National Bank (PNB), and Victorias Milling Co., Inc.

Nearly half or P4.6 billion of the company’s capex will be allocated for PNB’s digitalization efforts.

During the company’s annual stockholders’ meeting, LTG President and Chief Operating Officer Michael G. Tan said the group’s banking segment is expecting to see more nonperforming loans as the grace period given to borrowers ended in 2020.

“A better economy should pave the way for the need for more loans,” Mr. Tan said.

Meanwhile, the company does not expect its property firm to be as affected compared with other real estate developers since it has more office spaces in its leasing portfolio.

LT Group has increased its capex allocation to P2 billion for Eton Properties after construction was halted last year due to pandemic restrictions.

The company also set some P1 billion for ALI Eton Property Development Corp., its joint venture firm with Ayala Land, Inc.

“We expect the demand for our consumer goods, those of TDI and ABI to show some volume growth or at least remain steady,” Mr. Tan said.

LTG earmarked around P1.5 billion of its capex for TDI and around P700 million for ABI.

“But the volume of PMFTC’s 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,” Mr. Tan said.

LTG also said it was able to secure enough vaccines for over 54,000 of its employees and service providers, as well as for their families.

On Wednesday, LTG shares at the stock exchange went down by 1.36% or P0.18 to close at P13.10 apiece.

Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Get the daily email that makes reading the news actually enjoyable. Stay informed and entertained, for free.
Your information is secure and your privacy is protected. By opting in you agree to receive emails from us. Remember that you can opt-out any time, we hate spam too!

Latest

Investing

Virgin Orbit’s next satellite launch will take place from the UK, following the success of the “Straight Up” mission, which lifted off from Mojave...

Investing

Post Office collection and cash delivery workers are to stage a one-day strike later this month in a dispute over pay. Members of the...

Investing

UK consumers cut back on credit card borrowing in May amid fears over rising interest rates and a slowing economy driven by a cost...

Investing

London City airport is seeking to overturn its Saturday flight ban and raise by 40% the limit on its passenger numbers. A local residents’...

Investing

The bank said that it was introducing a £1,200-a-year pay increase from August 1, which would start to show in next month’s pay packets....

Investing

Postmasters caught up in the Horizon IT scandal say that they are still being “left in the dark” about a compensation package after the...

You May Also Like

Investing

Having a good Instagram marketing agency to back up your Instagram account is an absolute must going into the new year. With competition stronger...

Economy

Ivermectin, an existing drug against parasites including head lice, has had a checkered history when it comes to treating COVID-19. The bulk of studies...

Investing

Insomnia is the most common sleep disorder in the global population. Therefore, it is a problem that many people suffer or have suffered throughout...

Investing

As a traditionally rigid insurance industry becomes bogged down by antiquated processes and operations, a handful of industry leaders are seeking to shake things...

Disclaimer: SmartRetirementReport.com, its managers, its employees, and assigns (collectively "The Company") do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

Copyright © 2021 SmartRetirementReport. All Rights Reserved.