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Friday, March 29, 2024

Lucio Tan’s holding company reported 40% growth in first-quarter net income

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LT Group Inc., the listed holding company of tycoon Lucio Tan, said Friday net income climbed 40.5 percent in the first quarter to P6.21 billion from P4.42 billion in the same period last year on the back of strong contribution from the tobacco business.

LT Group said in a disclosure to the stock exchange the strong first-quarter income was led by better-operating results of the tobacco and property development segments which offset the lower net incomes of the banking, distilled spirits, and beverage segments.

Philippine National Bank contributed P761 million or 12 percent of total attributable income while the tobacco business accounted for P5 billion or 80 percent.

Tanduay Distillers Inc. accounted for P199 million, followed by Eton Properties Philippines Inc. which added P168 million and Asia Brewery Inc. with P74 million.

The company’s 30.9-percent stake in Victorias Milling Company Inc. also contributed P91 million to total revenues.

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Consolidated revenues increased 15 percent in the first quarter to P25.2 billion from P21.9 billion a year ago on account of the higher revenues in the banking, distilled spirits and beverage segments.

Cost of sales and services increased 2.5 percent to P11 billion, on higher excise taxes on goods sold by the distilled spirits segment.

The tobacco segment’s net income rose 72.4 percent to P5 billion on account of the increase in equity in net earnings from PMFTC and price increases implemented in August 2019.  Volume, however, declined by 9 percent in the first quarter.

Philippine National Bank’s income fell 30 percent to P1.37 billion, because of the P3.36-billion provisions for credit losses that the bank booked in the first three months amid the COVID-19 pandemic.

Tanduay’s bottom line went down by 15 percent in the first three months to P199 million because of lower margins from higher alcohol costs.

Eton Properties’ net income rose 13 percent in the first quarter to P169 million on higher rental income and the improvement in the gross profit margin of real estate sales.

Eton Properties had a leasing portfolio of 181,000 square meters of office space and over 43,000 square meters of retail space as of end-March.

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