Lucio Tan’s LT Group increases profit to P9.39b
LT Group Inc., the listed holding company of tobacco tycoon Lucio Tan, booked a net income of P9.39 billion in 2016, up 42 percent from P6.6 billion in 2015, as all business units posted favorable results.
LT Group said in a disclosure to the stock exchange Philippine National Bank accounted for P3.42 billion, or 36 percent, of the group’s attributable income.
The tobacco business contributed P2.58 billion, followed by Asia Brewery Inc. at P1.75 billion, Tanduay Distillers Inc. with P908 million and Eton Properties Philippines Inc. at P388 million.
Equity in net earnings from Victorias Milling Company Inc. amounted to P142 million.
PNB reported a net income of P7.38 billion in 2016, up 9 percent from the P6.77 billion in 2015, as net interest income rose 11 percent and loans receivables improved 17 percent.
LT Group’s tobacco business also registered an income of P2.59 billion in 2016, a 149-percent jump from P1.04 billion reported in 2015, due to the change in the mix of sales, with premium Marlboro accounting for a higher share of the total volume.
Beverage unit Asia Brewery Inc. registered earnings of P1.76 billion in 2016, an increase of 60 percent from the 2015 level. The company’s 2016 earnings include a P594-million extraordinary income arising from the revaluation of the beer assets.
ABI’s Cobra energy drink and Vitamilk soymilk continue to be market leaders, while Absolute and Summit bottled water have the second largest market share.
Meanwhile, net income of Tanduay Distillers Inc. more than doubled to P908 million, from P422 million generated in 2015. LT Group attributed the growth mainly to the start of the contribution of bio-ethanol sales in 2016.
Sales volume rose two percent as Tanduay remained the dominant player in the Visayas and Mindanao.
Eton Properties reported a net income of P390 million in 2016, up 25 percent from a year ago, as revenues climbed 14 percent to P2.83 billion.
Eton Properties in August broke ground on the fifth BPO office tower at Eton Centris in Quezon City. It will have a gross leasable space of around 37,000 square meters and is expected to be completed by end-2018.
The firm’s 5,000 square meter expansion of the retail space at Centris Walk in Eton Centris, which started in April 2016, is scheduled to be completed by mid-2017.