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GT Capital Q2 income up as auto sales rise

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By Arra B. Francia, Senior Reporter

GT Capital Holdings, Inc.’s attributable profit grew 15% in the April to June period, on the back of higher revenues from its auto unit and increased contributions from its associates.

In a regulatory filing, the listed conglomerate said net income attributable to the parent reached P3.92 billion in the second quarter, following a 3% increase in revenues to P57.26 billion.

“The increase was principally due to revenue growth from automotive operations, equity in net income of associates, and joint ventures and other income,” the company said.

GT Capital’s units include Toyota Motor Philippines Corp. (TMP), Federal Land, Inc., Metropolitan Bank & Trust Company (Metrobank), Metro Pacific Investments Corp., and Sumisho Motor Finance Corp. (SMFC).

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On a six-month basis, GT Capital’s attributable profit was up 3% to P7.34 billion while revenues were also 3% higher to P104.27 billion.

“Easing inflation, coupled with declining interest rates, and improved consumer confidence created conditions for growth in GT Capital and its component companies…We are optimistic for the rest of 2019 as macroeconomic indicators improve,” GT Capital President Carmelo Maria Luza Bautista said in a statement.

TMP’s revenues for the first half was flat at P76.1 billion, following the sale of 73,454 units of retail vehicles — almost unchanged from the same period a year ago. However, it noted that Toyota remains to be the dominant automotive brand in the country with a market share of 37.6% by end-June.

For the second quarter alone, Mr. Bautista noted that TMP’s revenues surged 25% to P42 billion, due to improvement in the sales of retail vehicle units amid a slight decline in wholesale volumes. This led to a 44% increase in earnings to P2.6 billion for the quarter.

“The challenge now is how to maintain the momentum of the second quarter for the rest of the year,” Mr. Bautista said in a media and analysts’ briefing in Taguig Thursday.

TMP looks to end the year with 71 Toyota dealerships across the country, then further increase it to 83 by end-2021.

Metrobank realized an 18% jump in earnings to P13 billion, due to loan growth and margin expansion, higher fee-based income, and prudent operational expenditures.

For Federal Land, net income grew 10% to P572 million, boosted by a 12% uptick in revenues to P5.9 billion. Reservation sales climbed 52% to P8.9 billion, as the company launched several projects toward the end of 2018. Its inventory also increased by 30% to 1,774 units following the launch of two projects in the first half.

Infrastructure conglomerate Metro Pacific Investments Corp. saw a 1% increase in consolidated core profit to P8.7 billion, mainly due to the growth of Manila Electric Co. and Maynilad Water Services, Inc. MPIC also recorded traffic growth in its domestic toll roads, as well as more patients in its hospital network.

Insurance firm AXA Philippines posted a net income of P1.2 billion, 12% lower year on year due to a 59% drop in single premiums.

Shares in GT Capital rose 0.76% or P6.50 to close at P864.50 each at the stock exchange on Thursday.

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