LT Group profit up 42%

MANILA, Philippines - LT Group Inc. of tycoon Lucio Tan reported a net income of P9.39 billion last year, up 42 percent from 2015 on robust consumer spending.

Banking arm Philippine National Bank posted net earnings of P7.38 billion last, nine percent higher than the P6.77 billion recorded in 2015.

The tobacco business, through PMFTC, grew its net income by 149 percent to P2.59 billion last year.

“Higher earnings were due to the change in the mix of PMFTC’s sales, with premium Marlboro accounting for a higher share of total volume,” LTG said in a disclosure to the local bourse.

The tobacco business accounted for P2.58 billion or 27 percent of LTG’s attributable income.

Asia Brewery Inc., meanwhile, earned P1.76 billion or an increase of 60 percent.

This is inclusive of a P594 million extraordinary income arising from the revaluation of the beer assets.

In May 2016, ABI disclosed it would form a joint venture with Heineken for the beer business. The beer and alcopop businesses were transferred to AB Heineken Inc., the joint venture company.

Cobra energy drink and Vitamilk soymilk continue to be market leaders, while Absolute and Summit bottled water have the second largest market share.

ABI accounted for 19 percent or P1.75 billion of LTG’s total income.

Tanduay Distillers Inc. reported a net income of P908 million, more than double the P422 million generated last year as bio-ethanol sales have started.

In terms of volume, TDI reported a two percent increase in the volume of liquor sales but its market share based on Nielsen’s customer off-take on volume was at 23 percent nationwide as of the end of 2016.

Nevertheless, Tanduay remained the dominant player in the Visayas and Mindanao areas where market share increased to 60 percent from 58 percent in end-2015.

Realty firm Eton Properties Philippines Inc. saw its net income grow 25 percent to P390 million on the back of a 14 percent increase in revenues to P2.83 billion due to higher lease rates and the sale of residential units.

In August, the company broke ground for its fifth BPO office tower at Eton Centris in Quezon City. It aims to have gross leasable area of around 37,000 square meters.

Eton also broke ground on Eton WestEnd Square, a mixed-use development along Pasong Tamo, Makati. It will have about 15,000 square meters of GLA for retail and office use, as well as a 44-storey residential component. The office and retail components are targeted to be completed by end-2019.

Equity in net earnings from Victorias Milling Co., meanwhile, amounted to P142 million.

LTG’s balance sheet remained strong. As of the end of December last year, the parent company’s cash balance stood at P1.9 billion.