Tobacco business boosts LT Group net profit to R6.8 B

LT Group, Inc. (LTG) reported a 9 percent improvement in unaudited attributable net income for the first nine months of 2017 to R6.83 billion compared to the R6.25 billion reported for the same period last year.

In a disclosure to the Philippine Stock Exchange, the firm said its tobacco business accounted for 42 percent or R2.87 billion of total attributable income.

This was followed by Philippine National Bank (PNB) with R2.59 billion or 38 percent of total. Asia Brewery, Inc. (ABI) contributed R455 million or 7 percent, while Tanduay Distillers, Inc. added R438 million or 6 percent.

Eton Properties Philippines, Inc. (Eton) and LTG’s 30.9 percent stake in Victorias Milling Company, Inc. (VMC) each provided around 4 percent or R246 million.

The tobacco business’ income reached R2.88 billion in the first nine months of 2017, a 60 percent jump from the R1.80 billion generated in the same period last year.

The higher earnings were mainly attributed to improved pricing and better sales mix. In November 2016, PMFTC raised the price of Marlboro for the first time since January 2013.

PNB’s net income amounted to R4.64 billion for the first nine months of 2017, 22 percent down from the R5.91 billion generated in the previous year due to lower gains from the sale of Real and Other Properties Acquired (ROPA), which amounted to R518 million, substantially lower than the R2.30 billion booked in the same period of 2016.

ABI’s net earnings was at R455 million for the first nine months of 2017, 49 percent lower than the R895 million reported for the same period last year, primarily due to higher spending on new products.

TDI’s net income was 35 percent lower at R438 million for the first nine months of 2017 as revenues from ethanol were 24 percent lower at R1.44 billion, with a similar drop in sales volume. Margins were also lower due to higher alcohol costs. (JAL)