LT Group profit doubles to P9 B

MANILA, Philippines — LT Group Inc. (LTG), the conglomerate of taipan Lucio Tan,  grew its net income by 97 percent to P8.96 billion in the first half as earnings from its tobacco business normalized.

Its banking arm, Philippine National Bank, also booked gains from the sale of its real and other properties acquired (ROPA), which boosted LTG’s total earnings.

PNB contributed P3.08 billion or 35 percent of total attributable income, while Philip Morris Fortune Tobacco Corp. poured in P4.86 billion or 54 percent.

Liquor through Tanduay Distillers Inc. (TDI) generated P437 million or five percent, beverage through Asia Brewery Inc. contributed P218 million or two percent and Eton Properties added P212 million or two percent of the total.

The group’s stake in Victorias Milling Co. added P115 million or one percent of total.

In particular, PNB’s net income jumped 100 percent to P5.51 billion, buoyed by a P2.9 billion net gain from the sale of ROPA.

Income from the tobacco business amounted to P4.88 billion, while equity in net earnings from the 49.6 percent stake in PMFTC amounted to P4.72 billion.     

“The higher earnings were 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.  The company hopes that the government continues on its actions versus the illicit trade, which include smuggled and locally produced products,” LTG said.

The industry’s total volume was estimated to have decreased four percent to 34.3 billion sticks, largely due to excise tax driven price increases.