Lucio Tan’s holding firm doubles earnings to P12.6 billion in 9 months

MANILA, Philippines — LT Group Inc. (LTG), the listed holding firm of taipan Lucio Tan doubled its nine-month income to P12.57 billion from P6.8 billion a year ago.

Philippine National Bank (PNB) contributed P4.27 billion or 34 percent of the total earnings, while PMFTC accounted for P6.83 billion or 54 percent, Tanduay Distillers Inc. (P707 million or six percent) Eton Properties Philippines (P314 million or three percent) and Asia Brewery Inc. (P291 million).

The company also has a 30.9 percent stake in Victorias Milling Co. Inc. (VMC), which added P115 million or one percent to total income.

PNB posted a net income of P7.63 billion during the period, up 65 percent. This included a net gain of P3 billion from the sale of real and other properties acquired (ROPA).

LTG’s equity in net earnings from its 49.6 percent stake in PMFTC amounted to P6.7 billion.

Tanduay’s net income, meanwhile, surged 65 percent to P722 million. Total revenues rose 10 percent to P13.66 billion on the back of strong sales of liquor and bioethanol.

The company’s nationwide market share for distilled spirits improved to 28.3 percent as of  the end of September from 26.1 percent a year ago.

Eton posted a net income of P314 million, up 28 percent. Revenues grew nine percent to P1.81 billion as both leasing revenues and sales of residential units increased.

Asia Brewery, on the other hand, reported a 36 percent drop in net income to P291 million. Revenues increased by six percent due to higher revenues from packaging, energy drinks, bottled water and soymilk.

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

However, overall gross profit margin (GPM) declined as a result of product mix, as well as higher costs attributed to the sugar tax and depreciation of the peso against the dollar.