LT Group posts lower H1 income

MANILA, Philippines - LT Group Inc. (LTG), the holding company of taipan Lucio Tan, reported a net income of P4.53 billion in the first half, slightly lower than the same period last year.

The conglomerate’s business include tobacco through PMFTC,  banking through Philippine National Bank, beverage through Asia Brewery, liquor through Tanduay Distillers, and property through Eton Properties Philippines.  It also has a 30.9 percent in Victorias Milling Co. Inc.

The tobacco business contributed 41 percent or P1.85 billion to the groupwide total earnings followed by PNB (P1.52 billion or 34 percent), and ABI (P401 million or nine percent), Tanduay Distillers (P339 million or seven percent), and Eton (P174 million or four percent).

Equity in net earnings from its stake in VMC reached P246 million, representing five percent of the total.

The tobacco business generated an income of P1.86 billion, 28 percent more than the P405 million recorded a year ago on the back of higher selling prices as PMFTC raised the price of Marlboro for the first time since January 2013, with the recommended retail price per stick at P3.50 from P3.

PNB’s net income, on the other hand, declined 38 percent to P2.75 billion.

TDI’s bottom line was also lower at P339 million or 24 percent lower than the P444 million recorded a year earlier.

Liquor sales volume increased 22 percent year on year. However, the volume of ethanol was 30 percent lower, while margins contracted due to lower selling prices and higher alcohol costs.

ABI’s net income fell 44 percent to P401 million as operating expenses increased because of advertising and selling requirements.