LT Group transitions to 3rd Gen leadership

MANILA, Philippines — Taipan Lucio Tan’s investment holding firm, LT Group Inc., has officially transitioned into its new leadership after capping 2022 with its highest ever profit of P25.1 billion, higher by 24 percent than the P20.25 billion reported in 2021.

The bank, tobacco and airline tycoon’s son, Michael, is stepping down after steering the conglomerate as president and COO over the past 10 years through challenges including the COVID-19 pandemic.

He will be succeeded by his nephew, Lucio Tan III, as the LT Group paves the way for third generation leaders. Tan III is now the vice chairman, president and COO of the company.

Last year’s record income was nearly three times the P8.7 billion recorded in 2013 when LTG had its initial public offering that raised P37.7 billion.

Following its record profit in 2022, LTG likewise declared its highest-ever cash dividend of P1.40 per share or a total of P15.2 billion, representing a 74.8 percent payout rate. Since its IPO in 2013, LTG has declared dividends of P4.58 per share or a total of P49.6 billion.

“We reported LTG’s highest ever attributable net income of P25.1 billion in 2022,” Michael said in his message during the company’s annual stockholders meeting yesterday.

The company recorded strong performance despite challenges, such as higher energy, raw material and freight costs, interest rates and foreign exchange rates.

“The task of the president of this company is not about the glitz and glamor, but meant stewardship over what was entrusted to me, with careful and responsible management, with accountability. I have handled the responsibility with integrity and done what I could to the best of my ability. I have always put the interests of the stakeholders and shareholders, especially the minority shareholders, above everything else,” Tan said.

He will remain as board director and as president of Asia Brewery Inc.

In his message, he thanked stakeholders for the continued support and trust through these years.

Meanwhile, the taipan, who remains as chairman, likewise thanked shareholders, but also noted that challenges remain in a prepared message read by Tan III.

“The road ahead is not easy. As we transition from the pandemic to full normalcy, our economy and our companies will continue to face some turbulence. While keeping an eye on new opportunities, we must also draw from our experience and the wisdom of years to advance the best interests of our shareholders and the public we serve,” he said.

Tan did not appear during the virtual meeting, but Tan III said he was in attendance.

Tan III, for his part, said he is aware of the challenges and that the business landscape is indeed evolving.

“As I assume this new role, I am keenly aware of the challenges we face as a company. The business landscape is constantly evolving and we must adapt quickly to stay competitive. However, I am confident that with our talented and dedicated team, we will overcome and achieve even greater success,” he said.