MANILA – Tycoon Lucio Tan’s LT Group, Inc. (LTG) is optimistic about the local business environment bringing better prospects for its business units.
During the company’s stockholders’ meeting Tuesday, LTG President Michael Tan noted that the administration’s push for better infrastructure development will lead to higher employment, particularly in the countryside.
This is also seen to bring increased purchasing power and higher consumer demand, in which the listed company will likewise benefit.
Tan said Philippine National Bank (PNB) will tap opportunities for sustained loan demands.
“PNB will be able to take advantage of the sustained demand for loans. The bank’s migration to a unified, more modern IT system within 2017 should enable it to offer customers more products and services,” the company stated.
For its alcoholic beverages, Asia Brewery is seen to benefit from increasing income of consumers, while Tanduay will take advantage of the renewed demand for rum particularly in the Visayas and Mindanao.
Its joint venture with Heineken will develop a bigger market for LTG for beer and alcopop segments.
“Consumers’ higher disposable income will sustain demand as well as provide a new market for Vitamilk soymilk which was previously being sold only in the modern trade,” the LTG said.
For its property business, the company said Eton will continue to enjoy high occupancy rates in office, retail, and residential spaces.
LTG likewise is hopeful that PMFTC Inc.’s profit will improve with the government’s move to address illicit trade in the tobacco industry.
With its bullish outlook in the market, LTG’s capital expenditure for this year increased to P10 billion from P6.0 billion in 2016.
“The bulk will be for the construction of Eton’s projects and the technology upgrades for PNB,” the company said.
