MANILA, Philippines — LT Group Inc. (LTG), the investment holding firm of taipan Lucio Tan, reported an attributable net income of P6.53 billion in the first quarter, less than a percent higher compared to P6.49 billion a year ago, with the tobacco business accounting for P4.21 billion or 64 percent of total.
Its banking arm, Philippine National Bank (PNB), contributed P1.61 billion or 25 percent, while rum maker Tanduay Distillers Inc. (TDI) added P330 million or five percent of total.
Property unit Eton Properties Philippines Inc. contributed P127 million or two percent, while Asia Brewery Inc. (ABI) accounted for P80 million or one percent.
LTG’s 30.9 percent stake in Victorias Milling Company Inc. (VMC) added P111 million or two percent of total.
The tobacco business through PMFTC, a partnership between Philip Morris and Fortune Tobacco, reported a net income of P4.22 billion during the period, 16 percent lower than the P5.02 billion recorded a year ago despite a 19 percent increase in industry volume to 15.6 billion sticks.
“There was no price increase implemented in 2021 and most of the first quarter of 2022, with the previous one in October 2020, so the lower profit can be attributed to the P5 increase in excise taxes that PMFTC had to absorb starting Jan. 1, 2022,” LTG said in a regulatory filing.
Under Republic Act 11346, excise taxes are now at P55 per pack.
PNB reported a net income of P2.86 billion in the first quarter under the pooling method, up 57 percent, while Tanduay Distillers grew its first quarter net income by 42 percent to P333 million as liquor volume slightly increased and bioethanol volume had a higher growth of over 60 percent.
Eton reported a net income of P128 million during the period, down 15 percent from P150 million a year ago.
Asia Brewery’s first quarter net income likewise declined by 62 percent to P80 million due to rising costs of raw materials, fuel, and other costs even as volumes grew.
Cobra energy drink remains the market leader with a 58 percent market share, as well as Soymilk Vitamilk with a market share of 75 percent. Bottled water brands Absolute and Summit continue to corner the second largest market share at 22 percent.