LT Group income slightly up in 2023

MANILA, Philippines — Earnings of tycoon Lucio Tan’s LT Group Inc. (LTG) saw a slight improvement last year as higher contributions from its banking, liquor and property units offset the slowdown in the tobacco business.

LTG reported an attributable net income of P25.42 billion in 2023, up one percent from the previous year’s P25.14 billion.

The tobacco business, which contributed 45 percent of total earnings during the year, posted a 26 percent decline in net income to P11.38 billion from P15.34 billion.

LTG said the industry’s volume, excluding illicit trade, was 20 percent lower year-on-year due largely to the industry-wide price jump in the first quarter of last year, rising illicit incidence and trade inventory movements.

The banking arm Philippine National Bank’s net profit under the pooling method, meanwhile, surged by 62 percent to P19.02 billion.

LTG said PNB’s 2023 profit included a P4.54 billion gain from the sale of repossessed assets, compared to P7.78 billion in 2022.

Tanduay Distillers Inc. also posted a seven percent rise in net income last year to P1.57 billion from P1.47 billion.

Despite a five percent decrease in revenues to P29.95 billion as volume of both liquor and bioethanol fell year-on-year, margins improved as Tanduay was able to pass on increased raw material and energy costs.

Tanduay increased its nationwide market share for distilled spirits as of end 2023 to 31.4 percent from 27.7 percent as of December 2022.

Net profit of Eton Properties last year likewise grew by 23 percent to P453 million from 2022’s P373 million due to higher leasing revenues.

Asia Brewery Inc.’s net income, however, suffered a one percent decline to P578 million despite revenues inching up by one percent to P17.38 billion.

Revenues were up due to higher volume of bottled water and price increases in the first quarter of 2023.

Cobra energy drink maintained its leadership with a market share of 60.4 percent last year while bottled water brands Absolute and Summit have the third-largest share at 19 percent.