LT Group’s first-half income rose 17% to nearly P15 billion

LT Group Inc. (LTG) of tycoon Lucio Tan said Tuesday its first-half net income rose 17 percent to P14.97 billion, its second-best first-half result since its follow-on public offering.

The company’s banking and tobacco businesses were the largest contributors to the group’s profit, with Philippine National Bank (PNB) contributing P7.03 billion, or 47 percent, and Fortune Tobacco Corp. (FTC) adding P5.44 billion, or 36 percent.

Tanduay Distillers Inc. (TDI) contributed P1.35 billion and Asia Brewery Inc. (ABI) added P489 million, accounting for 9 percent and 4 percent of total profit, respectively.

Eton Properties Philippines Inc. and Victorias Milling Co. contributed a combined P627 million, or 4 percent of total profit.

The company’s debt-to-equity ratio was 3.12:1 as of June 30, 2025, with the bank and 0.11:1 without the bank. The parent company held a cash balance of P2.07 billion.

LTG declared a special dividend of P0.30 per share in June, bringing the total cash dividends for the period to P6.49 billion, or a payout rate of 22.4 percent. This is in addition to the P3.25 billion in dividends declared in March.

PNB’s net income in the first half of 2025 increased 22 percent to P12.52 billion, its best first-half performance to date, excluding one-off gains from the sale of foreclosed properties.

The bank’s gross interest income rose 5 percent to P34.63 billion on higher yields and increased loan volume. Its net interest income increased 7 percent year-on-year to P25.77 billion, with the net interest margin expanding to 4.6 percent from 4.4 percent.

Net service fees and commission income increased 24 percent to P2.82 billion, driven by higher fees from bancassurance, credit cards, and loan-related products.

Trading and investment securities and net foreign exchange gains were also higher at P1.44 billion compared with P877 million a year earlier.

Operating expenses were 2 percent lower at P15.99 billion, mainly due to a lower provision for loan losses.

FTC’s net income rose 12 percent to P5.46 billion in the first half of 2025, driven by a 10-percent increase in equity earnings from PMFTC, the joint venture with Philip Morris International.

PMFTC’s cigarette shipments outpaced industry growth, rising 4.9 percent to 11.1 billion sticks. Its market share was 46.4 percent.

The company raised cigarette prices in November 2024 to cover excise taxes, which increased to P66.15 per pack of 20 sticks on January 1, 2025.

TDI’s net income nearly doubled to P1.36 billion, its strongest first-half performance to date, driven by higher selling prices. Net revenues rose 4 percent to P15.25 billion.

The company’s gross profit margin improved to 17 percent from 14 percent a year earlier. Operating expenses were lower at P886 million due to lower advertising and promotion costs.

TDI’s nationwide distilled spirits market share grew to 38.0 percent from 33.0 percent.

ABI’s net income in the first half of 2025 was slightly lower at P491 million, as sales volumes decreased for its Cobra Energy Drinks and Vitamilk brands. Revenues fell 6 percent to P8.84 billion.

Despite the lower revenues, the company’s gross profit margin improved to 25 percent from 22 percent due to packaging and formulation improvements and a decrease in manufacturing costs.

Cobra energy drink’s market share was 46 percent, while the Absolute and Summit bottled water brands collectively held 15 percent, securing third place among local water brands.

Eton Properties Philippines Inc. reported a net income of P352 million, up from P327 million a year earlier.

Leasing revenues, which accounted for 81 percent of total revenue, were slightly lower at P916 million. Real estate sales were P212 million as the company continued to sell remaining inventory.

Operating expenses were lower at P389 million, mainly due to lower general and administrative expenses.