LT Group nets 3% more in H1
Richmond Mercurio (The Philippine Star) - August 14, 2019 - 12:00am

MANILA, Philippines — LT Group Inc., the conglomerate of taipan Lucio Tan, saw a three percent improvement in net income in the first half to P9.24 billion from P8.96 billion in the same period a year ago.

In a disclosure to the Philippine Stock Exchange, LT Group said its tobacco business accounted for the lion’s share or 63 percent total attributable income at P5.85 billion, followed by Philippine National Bank’s 24 percent contribution of P2.25 billion.

LTG said the improvement in earnings of its tobacco business is largely due to the volume mix in favor of premium Marlboro, as well as the price increase of Fortune in December last year.

“We commend the government for taking this problem (illicit trade) seriously, as the number of raids has been increasing and has been effective in curbing the presence of illicit products in the market. However, continued actions and vigilance are needed in order to contain the growth of the illicit trade. The tax-driven price increases of the tax paying industry players make it attractive to make profits from the illicit trade,” the group said.

Meanwhile, Tanduay Distillers Inc. accounted for P373 million of the group’s total attributable income , while Eton Properties Philippines Inc. added P370 million, or four percent each of the total.

Revenues from liquor were two percent higher year-on-year despite the five percent drop in volume as Tanduay was able to increase selling prices.

As of end-June, Tanduay’s nationwide market share for distilled spirits was at 29.8 percent, higher than the 28.7 percent posted in the same period last year.

Eton, for its part, recorded a 15 percent increase in revenues with higher residential unit sales, the addition of retail space and lease renewals at higher rates.

Asia Brewery Inc.’s bottom line for the first half stood at P244 million, 12 percent more than the P218 million reported in the same period last year.

Revenues grew by 10 percent year-on-year due to higher sales from energy drinks, bottled water and soymilk, but operating expenses were higher as the company spent more on advertising and promotions.

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

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