LT Group income rises 22% to P4.4 B

MANILA, Philippines — LT Group Inc. (LTG), the conglomerate of taipan Lucio Tan, reported a strong double-digit first quarter growth of 22 percent to P4.42 billion.

LTG’s businesses are banking through Philippine National Bank,  tobacco through PMFTC, liquor through Tanduay Distillers Inc.,  property development through Eton Properties Philippines Inc. and beverage through Asia Brewery Inc.

The tobacco business led the growth, accounting for P2.84 billion or 64 percent of the total attributable income while PNB contributed P1.08 billion or 24 percent.

The liquor business under Tanduay Distillers Inc. (TDI) added P229 million or five percent while Eton Properties accounted for P148 million or three percent.

Asia Brewery provided P82 million or two percent of total revenue while the 30.9 percent stake in Victorias Milling Co. Inc. (VMC) accounted for P75 million or two percent.

LTG’s tobacco business reported a net income of P2.85 billion during the period or 21 percent more than the  year ago.

Equity in net earnings from LTG’s 49.6 percent stake in PMFTC reached P2.69 billion, 18 percent higher than the first quarter. The improvement in earnings was due to the volume mix and the price increase of Fortune in December 2018.

PNB posted a net income of P1.95 billion for the first quarter, 30 percent higher than the year ago.

Tanduay Distillers net income for the first quarter, meanwhile, reached P234 million or 73 percent more than the P135 million reported for during the period as revenue from liquor increased on the back of a five percent growth in volume.

Eton likewise ended the quarter with a net income of P149 million or 54 percent higher than the P97 million recorded in the first quarter.

On the other hand, ABI, the beverage business, posted a net income decline of 45 percent to P82 million compared to the P149 million reported for the first quarter.

This was despite a growth a 13 percent growth in revenue to P3.86 billion. Revenue came from the sale of energy drinks, bottled water, packaging and soymilk.

ABI said the lower income was largely due to higher PET packaging costs as well as higher advertising and promotions expenses.

Cobra Energy Drink and Vitamilk Soymilk continue to be market leaders while Absolute and Summit bottled water have the second largest market share.