LTG profit quadruples to P15.4 billion

MANILA, Philippines — LT Group Inc. (LTG), the investment holding vehicle of taipan Lucio Tan, reported an attributable net income of P15.4 billion in the first half of the year, up 313 percent compared to the P3.7 billion recorded in the same period of 2021.

While the majority of its businesses, such as tobacco through PMFTC; beverage through Asia Brewery Inc.; distilled spirits through Tanduay Distillery Inc. and property development through Eton Properties posted declines, the banking segment through Philippine National Bank (PNB) showed improved results.

PNB’s net income of P11.1 billion during the period was significantly higher than last year’s net contribution as last year’s first half income of P22.2 billion included a P33.6-billion gain on the loss of control of PNB Holdings Corp. (PHC) that was eliminated at the consolidated level because PHC is still owned and controlled ultimately by LTG.

Thus, in the first half of last year, LTG’s share of the gain, at P19 billion, was eliminated from LTG’s attributable net income from PNB, bringing the bank’s first half 2021 contribution to a P6.5 billion loss.

On the other hand, for the current period, the banking segment’s higher net contribution was mainly due to the net reversals of impairment, credit and other losses coming from the reclassification of previously booked non-performing loans to performing status during the second quarter of the year, LTG said in a regulatory filing.

Tobacco accounted for P7.8 billion or 50 percent of total attributable income. PNB contributed P6.28 billion or 41 percent, Tanduay Distillers added P561 million or four percent of total, while Asia Brewery accounted for P294 million or two percent.

Eton Properties contributed P257 million or two percent.

The 30.9 percent stake in Victorias Milling Co. Inc. (VMC) added P186 million or one percent of total.

PNB’s net income under the pooling method was P11.15 billion for the first half of the year, P11.05 billion or 50 percent lower than the P22.2 billion posted a year ago.

Net interest income was P17.34 billion, three percent or P491 million higher than a year ago.

The tobacco business reported a net income of P7.8 billion for the first semester, P1.24 billion or 14 percent lower than the P9 billion reported in the first half of the year.

While volume was relatively flat, the lower profit can be attributed to the increase in excise taxes that PMFTC had to absorb as it only increased prices in March.

Tanduay Distillers’s net profit for the first six months of the year was P564 million, seven percent lower than the P605 million last year, due to higher alcohol and fuel costs.

Asia Brewery’s net income for the first semester was P294 million, also lower, by 14 percent or P49 million than the P343 million reported a year ago.

Despite the higher volumes of its products, higher raw material, fuel and other costs resulted in lower profits.

Cobra energy drink remains the market leader with a 58 percent market share during the period while Soymilk Vitamilk is also a market leader with a share of 76 percent.

Bottled water brands Absolute and Summit continue to have the second largest market share at 21 percent.

Eton Properties reported a net profit of P258 million during the period, 10 percent or P30 million lower than the P288 million reported for the same period in 2021.