LT Group income down in H1

MANILA, Philippines — LT Group Inc., the holding firm for the businesses of taipan Lucio Tan, reported a first half net income of P13 billion, down by 16 percent from the P15.40 billion earned a year ago, due to lower contributions from the tobacco and banking units.

Its tobacco venture PMFTC, which accounted for 45 percent of group income, logged in a first half net income of P5.85 billion, down by 25 percent.

Volume was 20 percent lower year-on-year in the first half at 21.3 billion sticks, largely due to the industry-wide price increase in the first quarter, increasing incidence of illicit trade and inventory movements.

Philippine National Bank (PNB), which contributed 42 percent to LTG’s income, posted a net profit under the pooling method of P9.76 billion, down by 12 percent from a year ago. The first half profit included a P2.93 billion gain from the sale of repossessed assets, compared to P5.25 billion in the first half of 2022. Loans and receivables were relatively flat.

On the other hand, liquor firm Tanduay, which accounted for five percent of net income, recorded a net income of P626 million, up by 11 percent more than the P564 million reported in the first half of 2022. This was despite the fact that both the volume of liquor and bioethanol were lower at 14 percent and 35 percent, respectively, the latter due to the closure of Asian Alcohol Corp. in October 2022.

Similarly, Asia Brewery, which provided three percent, posted a net income of P340 million in the first half, up by 16 percent.

Revenues were three percent higher at P8.41 billion on the back of higher volumes for Cobra energy drink and bottled water. Cobra maintained its leadership with a market share of 58.9 percent while bottled water brands Absolute and Summit have the third-largest share at 18.5 percent.

Eton Properties and Victorias Milling Co. each contributed two percent while other income accounted for one percent.