LT Group Inc., the listed holding company of billionaire Lucio Tan, said net income increased by 9 percent in the first half to P10 billion from a year ago, driven by the strong performance of its tobacco, liquor and real estate businesses.
LT Group said in a disclosure to the stock exchange earnings from the banking and beer businesses registered declines in the six-month period.
The company said the tobacco business accounted for P8.18 billion or 82 percent of total attributable income, followed by Philippine National Bank which contributed P795 million or 8 percent.
Tanduay Distillers Inc. added P541 million, while Eton Properties Philippines Inc. and Asia Brewery Inc. contributed P402 million and P40 million, respectively.
LT Group’s tobacco business booked a net income of P8.22 billion in the first six months, up 40 percent year-on-year.
Equity in net earnings from LT Group’s 49.6-percent stake in PMFTC was P8.25 billion, an increase of 46 percent from a year ago.
The higher income was attributed to the higher share of premium Marlboro and the price increases implemented in late August 2019.
The tobacco industry’s sales volume declined by 17 percent in the first half with the imposition of enhanced community quarantine in Luzon and in other areas of the country.
Republic Act 11346 increased the excise tax on tobacco starting January 2020 to P45 per pack from P35 per pack in 2019.
PNB’s net income under the pooling method reached P1.44 billion for the first half, down 64 percent year-on-year The lower net income was primarily due to the P8.44-billion provision for credit losses that the bank booked in the first half.
Tanduay’s net income went up 43 percent in the six-month period to P543 million on improved margin in the liquor segment and the significant decline in selling and marketing expenses.