LT Group’s net income grew 9% to P16.1 billion in nine months

LT Group Inc., the listed holding company of tycoon Lucio Tan, said Friday net income grew 9 percent in the first nine months to P16.1 billion from P14.72 billion in the same period last year on strong results from tobacco and liquor businesses.

The group said tobacco business accounted for P12.12 billion or 75 percent of the total attributable net income in the first nine months, followed by banking unit Philippine National Bank which contributed P2.24 billion or 14 percent.

Tanduay Distillers Inc. added P1.09 billion, accounting for seven percent of total net income while property arm Eton Properties Philippines Inc. contributed P630 million.

LT Group said the P12.17-billion net income of its tobacco unit was 27 percent higher than the same period last year. It said the increase in net income was due to higher sales of its premium and mid-priced cigarette brands and the price increases implemented in late August 2019 to pass on higher excise taxes.

PNB’s P4 billion net profit in the first nine-months of the year was down 39 percent from a year ago.  The lower net income was due to the P9.03-billion provision for credit losses that the bank booked due to the pandemic.  

Asia Brewery Inc. contributed P4 million while the group’s 30.9-percent stake in Victorias Milling Company Inc. accounted for P148 million.

LT Group said the P12.17-billion net income of its tobacco business under PMFTC was 27 percent higher than the same period last year. The increase was due to higher sales of premium and mid-priced cigarette brands and the price increases implemented in late August 2019 to pass on higher excise taxes.

PNB’s P4-billion net profit in the first nine-months of the year was 39 percent lower than a year ago as the bank made P9.03 billion in provisions for credit losses due to the pandemic.  

TDI’s P1.09-billion net income in the nine-month period was 110 percent higher than P518 million it booked in the same period last year.  The company attributed the higher income to increased liquor sales and a 36-percent decrease in selling and marketing expenses of P725 million.

Revenues from liquor rose 29 percent on the back of volume growth and price increases in January to pass on the higher excise taxes, while sales from bioethanol declined 28 percent as higher prices were able to partially offset the drop in volume.

Eton’s profit from January to September inched up by one percent to P633 million on higher rental income.  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-September.