MANILA, Philippines — LT Group Inc. (LTG), the listed holding company of taipan Lucio Tan, posted an unaudited net income of P20.25 billion last year, 3.7 percent lower than the P21.02 billion reported in 2020.
Bulk came from the tobacco business, through PMFTC, a joint venture between Philip Morris and Fortune Tobacco. This segment accounted for P17.43 billion or 86 percent of LTG’s total attributable income while Tanduay Distillers Inc. (TDI) contributed P1.24 billion or six percent of total.
LTG’s property arm, Eton Properties Philippines Inc. contributed P548 million or three percent while Asia Brewery Inc. (ABI) accounted for P475 million or two percent. Philippine National Bank (PNB) had a net contribution of P308 million or two percent of total after eliminating the gain of P33.44 billion from the transfer of real estate assets.
LTG’s 30.9 percent stake in Victorias Milling Co. Inc. (VMC) added P258 million or one percent of total.
The tobacco business reported a net income of P17.5 billion in 2021, P610 million or four percent more than the previous year’s P16.89 billion. This even as the industry’s volume was estimated to have declined by 10.8 percent to 55.4 billion sticks in 2021, primarily due to the impact of the pandemic and the various quarantine protocols on the purchasing power of consumers.
Illicit activities have also been rising, which includes smuggled and locally produced products.
Tanduay Distillers posted a net income P1.24 billion, up 124 million or 11 percent year on year.
Despite lower liquor volume, bioethanol sales were higher. As of the end of 2021, TDI’s nationwide market share for distilled spirits was at 26.6 percent compared to 22.5 percent a year ago. In the Visayas and Mindanao regions where most of TDI’s sales are generated, market share was at 66.9 percent and 74.3 percent, respectively, as of December 2021, compared to 62.2 percent and 78.9 percent, respectively, as of December 2020.
On the other hand, Eton reported a net income of P550 million, down 31 percent due to the decline in residential unit sales and lower leasing income.
ABI’s net income was likewise 20 percent lower at P475 million.
“The volume of Cobra Energy Drink was higher, but volumes of Absolute and Summit bottled water and Vitamilk soy milk were lower, as ABI’s on-the-go sales at convenience stores continue to be adversely affected by the various forms of lockdowns imposed since March 2020,” the company said.
Cobra Energy Drink remains the market leader with a 64 percent share while Vitamilk also maintained its leadership with a market share of 69 percent. Bottled water brands, Absolute and Summit, continue to have the second largest share in this segment at 22 percent.
Philippine National Bank, meanwhile, posted a net income under the pooling method of P34.02 billion for 2021, which included the P33.44 billion gain that the bank booked from transferring real estate assets into PNB Holdings Corporation (PHC), wherein 51 percent was subsequently declared as a property dividend.