Tobacco biz boosts LT Group profit to P6.83B
Tycoon Lucio Tan-led LT Group Inc. (LTG) posted a 9-percent year-on-year growth in net profit to P6.83 billion in the nine months to September period, driven mostly by higher earnings from its tobacco business.
The tobacco business under PMFTC Inc. accounted for 42 percent or P2.87 billion of total attributable income for the period, followed by banking arm Philippine National Bank (PNB) which contributed P2.59 billion or 38 percent.
Other contributors were: Asia Brewery Inc., which pumped in P455 million or 7 percent of attributable income, while Tanduay Distillers Inc. added P438 million or 6 percent. Property arm Eton Properties Philippines Inc. (Eton) and the group’s 30.9 percent stake in Victorias Milling Company Inc. (VMC) each provided around P236 million or 4 percent.
Income from the tobacco business reached P2.88 billion, surging by 60 percent year-on-year, mainly due to improved pricing and better sales mix. In November 2016, PMFTC raised the price of Marlboro for the first time since January 2013, with the recommended retail price per stick set at P3.50 from P3 previously.
PNB’s net income amounted to P4.64 billion at end-September, 22 percent lower year-on-year, mainly due to lower gains from the sale of idle assets.
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