LT Group profit increases in 2018
LT GROUP, Inc. (LTG) grew its attributable profit by 49% in 2018, as the higher performance of its banking, spirits, and property units offset the weaker year for its tobacco and beverage businesses.
LT GROUP, Inc. (LTG) grew its attributable profit by 49% in 2018, as the higher performance of its banking, spirits, and property units offset the weaker year for its tobacco and beverage businesses.
In a statement issued Monday, the holding firm of tycoon Lucio C. Tan, Sr. said net income attributable to the parent reached P16.19 billion last year, compared to P10.83 billion posted in 2017. Revenues also went up by 19% to P75.56 billion.
Fortune Tobacco Corp., the holding firm for LTG’s stake in PMFTC, Inc., accounted for 54% of its income at P8.72 billion. The company noted that volumes in the industry have been declining since the government raised excise taxes on cigarettes.
“PMFTC’s profitability has thus returned to the 2012 level prior to the substantial increase in excise taxes and the massive proliferation of the illicit trade,” LTG said.
Philippine National Bank (PNB) provided 33% of LTG’s net income at P5.47 billion. On a stand-alone basis, the lender’s earnings grew 14% to P9.78 billion thanks to the sale of real and other properties acquired during the period.
Tanduay Distillers, Inc. (TDI) contributed five percent of LTG’s net income at P890 million. On its own, the distilled spirits manufacturer saw its earnings jump by 44% to P909 million, versus the P631 million it delivered in 2017.
TDI also managed to increase its market share to 27.3% by the end of 2018, versus 24.8% in the year before.
LTG’s property unit, Eton Properties Philippines, Inc., generated P479 million or three percent of the parent’s net income.
The property developer booked a net income of P479 million last year, 38% higher year on year, following a 43% uptick in revenues to P3.2 billion. Eton attributed the strong performance to higher leasing revenues and better sales of residential units.
Meanwhile, Asia Brewery, Inc. (ABI) also contributed three percent to LTG’s net income at P421 million. This is 24% lower than the P552 million it posted in 2017.
ABI’s lower net income comes amid a nine percent increase in revenues to P14.13 billion due its packaging, energy drinks, bottled drinks, and soy milk products. It reported that Cobra Energy Drink and Vitamilk Soymilk remained to be market leaders in their categories, while Absolute and Summit bottled water have the second-largest market share.
Victoria’s Milling Company, Inc., where LTG holds a 30.9% stake, accounted for the remaining two percent of the conglomerate’s net income or P247 million.
Shares in LTG jumped 1.75% or 28 centavos to close at P16.28 each at the stock exchange on Monday. —