MANILA, Philippines — LT Group Inc. (LTG) of taipan Lucio Tan posted higher earnings in the nine months ending September as improvement in the operating results of most business units offset the slowdown in the tobacco segment.
From January to September, LTG’s net income reached P19.82 billion, three percent higher than last year’s P19.25 billion.
Improved revenues from the banking, distilled, beverage and property development segments pushed revenues up by 12.8 percent year-on-year to P95.16 billion.
Profit of the banking segment increased by 11.4 percent to P15.06 billion during the nine-month period on the back of higher net interest income.
LTG’s share in the net income of Philippine National Bank amounted to P8.44 billion for the period, higher than the P7.64 billion in 2023.
The distilled spirits segment also delivered improved earnings of P1.5 billion which was attributed to higher profits from the liquor segment due to increased sales volume and selling prices.
Higher sales volume in its major product lines likewise resulted in a 59.2 percent surge in the net income of the beverage segment from P449 million to P715 million.
The property development segment’s bottom line for the period was also higher at P499 million due to increased residential sales.
Eton continued to sell the remaining inventory of previously launched projects in 68 Roces in Quezon City and in Eton City, Laguna, bolstering real estate sales for the period to P312 million.
Meanwhile, the net income of LTG’s tobacco segment dipped by 12.4 percent to P7.94 billion from last year’s P9.06 billion due to lower equitized earnings from PMFTC resulting from decreased sales volume.
“The decline in PMFTC’s earnings stemmed from lower sales volume, which continues to be impacted by the persistent challenge of illicit tobacco trade within the country,” LTG said in its quarterly report.
“The overall industry volume remains susceptible to the growing presence of illicit products, posing a significant challenge to the legitimate tobacco market,” it said.