LT Group Inc., the listed holding company of billionaire Lucio Tan, said net income in the first quarter rose 36 percent to P3.8 billion mainly on the strong performance of its banking businesses, which helped offset a slowdown in its beer and cigarette units.
A filing at the Philippine Stock Exchange showed that revenues during the period rose 14 percent to P17.7 billion. Philippine National Bank, which is 45.5 percent-owned by LT Group, saw its first-quarter net income jump 105 percent to P3.7 billion.
The implementation of the new excise tax law at the start of the year hit earnings at LT Group’s beer unit, Asia Brewery Inc., a major revenue driver. Asia Brewery posted a 4.9-percent dip in net income to P229 million, matching a 4-percent drop in sales as higher prices softened demand for beer.
Tanduay Distillers reported a 93-percent drop in net income to P6.9 million. It noted that higher tax costs did not dent sales as higher prices increased revenues by 8.4 percent to P3 billion. The drop in profit, however, was mainly due to a one-time cost for the adjustment on a refund claim for excess taxes paid, the filing showed.
Net income from its tobacco business, through PMFTC Inc., increased 3.3 percent to P1.6 billion. Revenues fell 76.6 percent as it ceased manufacturing operations, which were transferred to PMFTC.
The group’s property unit, Eton Properties Philippines Inc., saw net income surge to P127.5 million from P19 million as revenues in the first quarter almost doubled to P1.16 billion. The company recognizes earnings as its projects reach certain completion milestones. This process was delayed last year as the builder redesigned and “improved” certain ongoing projects.
Higher earnings from commercial and business process outsourcing also help bolster revenues, the company noted.
LT Group completed a $914-million “top-up” share sale last month in what was the country’s biggest equity transaction to date.