LT Group, Inc., the listed holding company of tycoon Lucio Tan, said unaudited attributable net income in the first quarter of 2018 jumped 61 percent to P3.63 billion from P2.25 billion year-on-year, boosted by strong contributions from the tobacco and banking subsidiaries.
LT Group said in a disclosure to the stock exchange the tobacco business contributed P2.35 billion, or 65 percent of the total attributable income, followed by banking unit Philippine National Bank, which accounted for P833 million or 23 percent of the total.
Asia Brewery Inc. delivered P149 million to total net income while Tanduay Distillers Inc. generated P135 million.
Property unit Eton Properties Philippines Inc. contributed P97 million, while the company’s 30.9 percent stake in Victorias Milling Company Inc. shared P59 million.
The income from the tobacco business stood at P2.36 billion in the first quarter of the year, while equity in net earnings from the 49.6 percent stake in PMFTC Inc. reached P2.29 billion.
The company attributed the higher earnings to better pricing as the company is now operating in a level playing field and can pass on the increases in excise taxes, and finds no need to price its products at economically unsustainable levels.
LT Group said it wanted the government to sustain its drive against illicit trade, which includes smuggled and locally produced products.
The industry’s total volume was estimated to have decreased by 8 percent to 15.3 billion sticks in the first three months of the year largely due to excise tax driven price increases.
The company said cigarette price increases might result in a further drop in volume.
ABI’s net earnings amounted to P149 million, down 1 percent, while revenues rose 8 percent to P3.4 billion.
Margins declined as a result of product mix, as well as higher costs attributed to the depreciation of the peso.
Tanduay’s net income dropped 35 percent to P135 million while revenues from liquor inched rose 2 percent to P3.7 billion as selling prices were raised to pass on the increase in excise taxes.
Meanwhile, Eton’s first quarter net income climbed 29 percent to P97 million, while revenues rose 8 percent to P579 million after leasing revenues and sales from residential units increased.
