GT Capital Holdings Inc., the Ty family’s holding firm, on Wednesday said its income dropped 5 percent last year as weaker car sales dragged its revenues.
The company said its income slowed down to P13.4 billion for the entire 2018, from the previous year’s P14.2 billion. The fall of its core income was much deeper at 8 percent to P13.7 billion from the previous year’s P15 billion.
“GT Capital weathered strong headwinds in 2018 as soft vehicle unit sales were cushioned by noteworthy results in our financial services, property and insurance businesses,” GT Capital President Carmelo Maria Luza Bautista said in a statement.
“Tapering inflation, declining interest rates, persistent growth in overseas Filipino remittances, and election-related spending should reboot consumer confidence. Thus, we are optimistic for the rest of 2019,” Bautista said.
Revenues for the entire 2018 fell 10 percent to P215.8 billion, from P239.8 billion in the previous year.
Income of Toyota Motor Philippines Inc. fell by almost 40 percent to P8 billion last year from the previous year’s P13.2 billion. Revenues were down 14 percent to P159.2 billion, from P185.3 billion in 2017.
Toyota attained retail vehicle sales of 153,004 units for 2018, lower compared to 183,908 units in 2017, but the company said this was in line with the total industry’s decline in sales.
The automotive sector’s unit sales were down to 400,298 from 473,376 the previous year.
Also during the year, the company launched three new models—the compact SUV in May, a new Vios sedan in July and premier executive car Camry in December.
Toyota said it remains the dominant player in the Philippine auto sector with a 38.2-percent overall market share.
GT Capital’s unit, meanwhile, formed a company named JBA Philippines with auction house operator Japan Bike Auction Co. Ltd.
“GT Capital extends the value chain for its customers and complements the conglomerate’s Toyota and AXA businesses,” it said.
JBA Philippines is a strategic partnership between GT Mobility Ventures Inc. and JBA, a subsidiary of USS Co. Ltd. It said 60 percent of JBA Philippines will be controlled by GTMV, while 40 percent will be owned by JBA.
GTMV is a joint venture between GT Capital’s wholly owned automotive dealership company GT Capital Auto Dealership Holdings Inc. and Mitsui and Co. Ltd.
Meanwhile, lender Metropolitan Bank and Trust Co. posted a 21-percent net income growth in 2018, expanding to P22 billion from the P18.2 billion it registered in 2017.
Property development units Federal Land Inc. and Property Co. of Friends Inc. reported an aggregate net income of P2.4 billion in 2018, up 13 percent from P2.1 billion in the previous year.
It achieved a combined P23.8 billion in consolidated revenues in 2018, a 30-percent increase from the P18.2 billion booked in 2017.
Combined real-estate sales for the period grew 30 percent to P20.1 billion, from P15.4 billion the previous year. AXA Philippines’s consolidated net income rose by 25 percent to P3.1 billion in 2018, from P2.5 billion the previous year.
Consolidated life and nonlife gross premiums for the year reached P35.4 billion in 2018, from P32 billion the previous year, a 10-percent growth.