LTG delivers steady profit

MANILA, Philippines — LT Group Inc. (LTG) of taipan Lucio Tan posted a slight improvement in its profit in the first quarter as strong performances from its banking and beverage units were weighed down by lower earnings contributions from other businesses.

The attributable net income of LTG for the quarter inched up by one percent to P6.42 billion from P6.38 billion in the same quarter in 2023.

Its banking arm, Philippine National Bank (PNB), made the biggest contribution at P2.97 billion, accounting for 46 percent of total.

The listed bank’s earnings under the pooling method grew by 10 percent to P5.31 billion from P4.83 billion.

Asia Brewery Inc., for its part, saw its net profit double to P155 million as revenues expanded by 15 percent to P4.39 billion. Higher volumes across product lines drove the increase.

LTG said Cobra energy drink maintained its leadership with a market share of 57 percent in the first quarter, while bottled water brands Absolute and Summit have the third-largest share at 19 percent.

Meanwhile, LTG’s tobacco business posted a 13-percent drop in its net profit during the quarter to P2.66 billion from last year’s P3.06 billion.

Most of the tobacco business’ income is from equity in net earnings from the 49.6 percent stake in PMFTC.

LTG said the industry’s volume, excluding illicit trade, fell by 11 percent year-on-year to 10.2 billion in the first quarter, largely due to affordability challenges of consumers, increasing illicit incidence and the proliferation of vaping products.

The net income of Tanduay Distillers Inc. for the three-month period was also lower year-on-year at P255 million due to the decline in liquor volume.

Revenues dipped by five percent to P5.9 billion from last year’s P6.24 billion.

As of March, Tanduay’s nationwide market share for distilled spirits was at 31.6 percent, higher from 29.1 percent in March 2023.

LTG said market share in the Visayas and Mindanao regions, where most of Tanduay’s sales are generated, was at 70.3 percent and 79.5 percent, respectively.

Despite higher leasing revenues due to higher occupancy rates and lease rates, net income of Eton Properties Philippines from January to March slipped by five percent to P116 million from P122 million in the same period in 2023.

Eton ended the quarter with a leasing portfolio of around 289,000 square meters, of which close to 192,000 sqm is for office space.