LT Group income rises 11% to P34B

THE Lucio Tan-led LT Group Inc. saw its net income last year expand by 10.9 percent to P34 billion from 2022’s P30.7 billion following a double-digit growth in revenues.

Consolidated revenues grew 14.3 percent to P115.3 billion from P100.9 billion on the back of gains by banking, real estate, and alcoholic beverage units, the conglomerate told the stock exchange on Monday.

Net income attributable to equity holders, meanwhile, edged up by 1.1 percent to P25.4 billion from P25.1 billion, largely driven by banking segments’ robust growth that “more than offset the decline” in the tobacco business.

The tobacco and banking businesses, respectively, accounted for 45 percent and 42 percent of LT Group’s earnings, while Tanduay Distillers Inc. chipped in 6.0 percent.

Asia Brewery Inc. and Eton Properties Philippines Inc. contributed 2.0 percent apiece, while the stake in Victorias Milling Co. and other income accounted for 1.0 percent and 2.0 percent, respectively.

The conglomerate said Philippine National Bank’s net income surged by 62 percent to P19 billion from P11.8 billion. The 2023 earnings included a P4.5 billion gain from asset sales.

Tanduay’s net profit last year improved by 7.0 percent to P1.6 billion from P1.5 billion, despite the 15 percent and 30 percent year-on-year drop in liquor and bioethanol volumes, respectively.

The volume drop resulted in a 5.0 percent decline in revenues, to P29.95 billion from P31.62 billion, although price increases in October 2022 and January 2023 improved Tanduay’s margins.

In real estate, Eton’s net income climbed by 21 percent to P453 million from P373 million as leasing revenues surged by 17 percent year-on-year. Eton’s leasing portfolio consists of about 289,000 square meters (sqm), nearly 192,000 sqm of which is OFfiCE SPACE.

As for the tobacco business, net income was down 26 percent to P11.4 billion from the P15.3 billion earned in 2022, largely driven by lower sales volume.

Asia Brewery’s earnings also dipped, by 1.0 percent to P578 million from P583 million. Revenues, on the other hand, inched up by 1.0 percent to P17.4 billion from P17.2 billion due to higher volume for bottled water and price increases.

LT Group’s shares retreated by 65 centavos, or 6.31 percent, to P9.65 each amid a 0.45-percent increase in the benchmark Philippine Stock Exchange index.