LT Group income soars to P3.63 B

MANILA, Philippines — Tycoon Lucio Tan’s LT Group Inc.’s unaudited net income for the first quarter soared 61.3 percent to P3.63 billion from P2.25 billion in the same period last year on continued strong operations of its business units.

The tobacco business contributed P2.35 billion or 65 percent of total income, followed by Philippine National Bank with P833 million or 23 percent.   

The higher earnings of the tobacco business is mainly attributed to better pricing as the company is “now operating in a level playing field and can pass on the increases in excise taxes and no longer price its products at economically unsustainable levels.”

PNB’s net income, meanwhile, rose 18 percent year-on-year, with net service fees and commission income finishing strong due to higher loan-related and bancassurance fees.

Asia Brewery Inc. contributed P149 million to the group’s total income, while Tanduay Distillers Inc. generated P135 million and Eton Properties Philippines Inc. adding P97 million.

Asia Brewery’s revenues were eight percent higher year-on-year, driven by stronger demand for energy drinks, bottled water, soymilk and packaging.

Eton revenues grew eight percent to P579 million as both leasing revenues and sales from residential units increased.

Higher lease rates as well as additional retail space from the 5,200 square meter expansion of Centris Walk within the Centris complex in Quezon City also contributed to the growth of leasing revenues.