LT Group profit down 6 percent to P19.2 billion

MANILA, Philippines — LT Group Inc. (LTG), the holding firm for the businesses of taipan Lucio Tan, posted a decline in earnings in the nine months ending September due to lower contribution from its tobacco business.

LTG reported an attributable net income for the period of P19.25 billion, six percent lower than last year’s P20.41 billion.

The tobacco business, which accounted for 47 percent of the group’s income, saw earnings slip by 25 percent to P9.06 billion.

LTG said the industry’s volume was 20 percent lower year-on-year at 32.2 billion sticks, largely due to the industry-wide price increase in the first quarter, increasing illicit incidence, and trade inventory movements.

LTG’s banking arm, meanwhile, posted a strong performance during the nine-month period, with net profit under the pooling method rising by 18 percent to P13.52 billion.

Tanduay Distillers Inc. (TDI)’s net income for the nine-month period likewise jumped by 34 percent to P1.15 billion despite lower volumes of liquor and bioethanol.

Liquor revenues were relatively flat year-on-year due to price increases in October 2022 and in January 2023.

TDI’s nationwide market share for distilled spirits as of September expanded to 33.6 percent, compared to 30.7 percent in September 2022.

In the Visayas and Mindanao regions where most of TDI’s sales are generated, market share also grew to 71.8 percent and 83.2 percent, respectively.

Higher volume for bottled water and price increases in the first quarter across product lines, meanwhile, buoyed Asia Brewery Inc.’s profit by five percent to P449 million.

Cobra energy drink maintained its leadership with a market share of 61.1 percent, while bottled water brands Absolute and Summit have the third-largest share at 18.5 percent.

LTG’s property arm Eton posted a net income of P347 million, up four percent year-on-year, driven by the 17 percent surge in leasing revenues.

Eton currently has a leasing portfolio of around 288 thousand square meters, of which close to 192 thousand square meters is for office space.