LT Group nets 2.5B in nine mos, down 67%

LT Group, Inc. (LTG) reported a 67 percent drop in attributable net income to 2.5 billion for the first nine months of 2014 from the 7.6 billion earned in the same period last year, amidst the difficult operating environment of its various businesses.

Philippine National Bank’s (PNB) attributable net income contribution to LTG amounted to 1.3 billion or 52 percent of total. Asia Brewery, Inc. (ABI) contributed 796 million or 32 percent of total, followed by the tobacco business at 462 million or 19 percent.

Eton Properties accounted for 65 million or 3 percent while Tanduay Distillers, Inc. (TDI) posted an 83-million loss.

PNB reported a profit of 3.7 billion in the first three quarters of 2014, 46 percent lower than the 6.8-billion net income posted in the same period last year.

This is largely due to higher trading gains in 2013. In 2013, PNB booked 7.6 billion in trading gains, substantially higher than the 1.2 billion realized in 2014.

ABI’s net income for the first nine months of 2014 reached 797 million, 27 percent higher than the 626 million reported in the same period in 2013.

LTG’s income from the tobacco business amounted to 462 million for the first nine months of 2014, from the

2.8 billion reported in the same period last year, as PMFTC continues to be adversely affected by the illicit trade in cigarettes.

Eton’s net income amounted to 65 million for 2014. Leasing revenues were higher with the contribution of Centris Cyberpod Three, the latest BPO office building at Eton Centris, in Quezon City, Metro Manila.

TDI’s sales volume increased in the first nine months of 2014 due to intensified marketing efforts for its flagship product, Tanduay Five Years.

However, due to higher raw material costs, coupled with higher selling and marketing expenses, the company reported a loss of 83 million for 2014. TDI was able to reverse part of the losses, generating an income of 89 million in the third quarter of 2014.