Business

Lucio Tan to spend P19B for expansion of banking, liquor, property businesses

Bilyonaryo Lucio Tan-led LT Group Inc. is scaling up capital spending this year to continue beefing up the operations of all business units.

Bilyonaryo Lucio Tan-led LT Group Inc. is scaling up capital spending this year to continue beefing up the operations of all business units.

LT Group has earmarked P19 billion for capital spending, 73% higher than the P11 billion spent in 2018.

its president Michael G. Tan disclosed that the holding firm would continue to increase the capacities of its businesses and introduce new products to sustain its strong growth.

While the younger Tan is optimistic about the company’s prospects this year challenges remain on the homefront.

¹LTG is operating in an even more competitive environment, with continuing challenges to the dominant positions of its different products,” he said.

Michael said new laws that jack up the excise tax for cigarettes and alcoholic beverages “would adversely affect volumes.”

He said tax hikes should be moderate to mitigate the negative impact.

“Continual price increases to pass on higher excise taxes may result to further volume drops,” he said.

Nevertheless, the tobacco business under PMFTC (Philip Morris Fortune Tobacco Corp.) will remain as the group’s bread and butter.

Michael said sales of unit Tanduay Distillers Inc. (TDI) could decline if excise taxes are substantially increased.

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