LT Group Inc. of tycoon Lucio Tan reported a 15-percent increase in 2017 net income to P10.83 billion from P9.39 billion a year ago, boosted by the strong performance of the banking and tobacco businesses.
LT Group said in a disclosure to the stock exchange Philippine National Bank contributed P4.83 billion or 45 percent of the total attributable income, followed by the tobacco business at P4.39 billion, or 40 percent.
Liquor units Tanduay Distillers Inc. and Asia Brewery Inc. added P631 million and P551 million, respectively, while property unit Eton Properties Philippines Inc. provided P348 million.
Victorias Milling Company Inc., which is 30.9-percent owned by the company, contributed P174 million to the group’s total attributable net income.
PNB earlier reported net income in 2017 rose 16 percent to P8.56 billion from a year ago level of P7.38 billion. The higher income was attributed to increased net interest income, net service fee profit and higher gain from the sale of real and other properties acquired.
The group’s income from the tobacco business reached P4.40 billion in 2017, while net earnings from the 49.6-percent stake in PMFTC Inc. amounted to P4.37 billion.
The higher earnings were mainly attributed to better pricing and improved mix.
PMFTC in November 2016 raised the price of the Marlboro brand, the first time since 2013.
The industry’s total volume was estimated to have decreased by 6 percent to 74.9 billion sticks, largely due to excise tax-driven price increases, tempered by trade loading toward the end of 2017 in anticipation of more price increases as the excise tax was further raised starting 2018.
Tanduay booked a net income of P631 million in 2017, down 31 percent from P908 million in 2016 even as revenues rose 20 percent to P15.2 billion.
ABI’s 2017 profit also fell 69 percent to P552 million due to higher spending on new products.