Ty family-led conglomerate GT Capital Holdings Inc. grew its first quarter net profit by 5 percent year-on-year to P3.1 billion, boosted by higher earnings from its banking, infrastructure, car dealership and insurance businesses.
Excluding non-recurring items, GT Capital’s core net profit in the first quarter expanded by 12 percent year-on-year to P3.2 billion, the conglomerate disclosed to the Philippine Stock Exchange yesterday.
GT Capital’s consolidated revenue rose by 32 percent to P48.8 billion in the first quarter. This was attributed to strong auto sales from Toyota Motor Philippines (TMP) and higher equity in net income of associates Metropolitan Bank and Trust Co., AXA Philippines and Metro Pacific Investments Corp.
“We started 2017 on solid footing. The robust revenue and core earnings growth momentum from our component companies resulted in GT Capital’s healthy performance. The sound fundamentals of the Philippine economy coupled with the dominant strengths of our subsidiaries provide us with a very positive outlook for the rest of the year,” GT Capital president Carmelo Maria Luza Bautista said in a press statement.
Metrobank reported a net income of P5.6 billion for the first quarter, up 6 percent compared with the same period last year as earnings from core businesses expanded, with industry-leading growth in loans and low-cost deposit generation resulting in better margins.
Carmaker TMP’s net profit declined by 12.4 percent year-on-year to P2.5 billion in the first quarter. Its operating margins narrowed due to higher cost of sales arising from unfavorable foreign exchange, increased sales of low-margin models coupled with increase in operating and overhead expenses.
Nonetheless, consolidated revenue from TMP rose by 32 percent to P37.1 billion in the first quarter. It posted retail sales of 40,689 vehicles during the first quarter of 2017, achieving a 33 percent year-on-year improvement and cementing its overall market share at 39 percent. Strong sales from the Vios, Fortuner, Innova, Avanza, and Hilux contributed to Toyota’s income growth.
GT Capital’s property investments—Federal Land Inc. and Property Company of Friends Inc. (Pro-Friends)— booked a combined net income of P590.5 million, declining by 41.2 percent year-on-year. The drop in profit was attributed to Pro-Friends’ shift to a new construction technology that resulted in slowdown in percentage-of-completion of housing units. Eventually, however, GT Capital said the new technology would result in a more efficient construction process, particularly in the finishing stage. These units reported combined three-month revenues of P3.5 billion, down by 19.3 percent year-on-year. —DORIS DUMLAO-ABADILLA