GT Capital Holdings Inc., the conglomerate of taipan George Ty, saw its first half consolidated net income swell by 42 percent to P5.6 billion from P4 billion year-on-year, on t.he back of the strong growth in its car business and the steady performance of its other subsidiaries.
Consolidated revenues rose by 12 percent to P74.3 billion from P66.2 billion in the same comparable period, largely on the record sales of Toyota Motor Philippines Corp. (TMP).
GT Capital President Carmelo Maria Luza Bautista said on Friday that the first half performance is well within the group’s target to grow “double digits” in both revenue and profits for whole of 2015.
TMP has outpaced Metropolitan Bank and Trust Company (Metrobank) as GT Capital’s prime mover. The car maker contributed 39.4 percent to the total revenues, followed by Metrobank with 35.2 percent, Federal Land Inc. with 10.4 percent, Global Business Power Corp. with 9.2 percent, and AXA Philippines with 2.7 percent.
“GT Capital’s January to June results were at pace with our expectations. From the beginning of the year, our key component companies mostly sustained their revenue and income expansion, at times outperforming the industries in which they operate,” GT Capital Chairman Francisco C. Sebastian said in a statement.
“Supported by a benign inflation, heftier government spending, and the overall positive macroeconomic indicators projected for the rest of 2015, we remain confident in continuing the momentum we have achieved,” he added.
Metrobank saw a 30-percent increase in core net income to P9.3 billion. The bank capped the first half of the year with 938 branches and 2,159 ATMs.
TMP saw a 9-percent increase in revenues to P53.4 billion on the back of a 13-percent growth in volume, with 56,674 units sold in January to June. TMP Executive Vice President Ariel Arias said TMP is looking to hit 110,000 to 120,000 units this year.
Global Business Power reported its net income increased by 15 percent to P1.7 billion from P1.5 billion on the back of a non-recurring income from an insurance claim.
Federal Land, on the other hand, saw it revenues inch up 5 percent to P4.6 billion from P4.4 billion as it completed seven projects in 2014 and three projects so far this year.
Bautista said the group plans to ramp up its property venture via the recent investment in the Property Company of Friends Inc. (Pro-Friends) and by building office towers and commercial retail malls in Bonifacio Global City and the Bay Area in Pasay City.
On August 7, GT Capital acquired 22.68 percent of ProFriends for P7.24 billion with an option to increase its shareholdings up to 51 percent in the next three years.
Bautista said the group would “definitely” exercise the option to take advantage of the “bright spot” in affordable housing in the south of Metro Manila.
Pro-Friends is predominantly doing its developments in Cavite province.
GT Capital is allotting around P50 billion in its capital expenditures this year, largely for the benefit of the automotive business.-