LT Group earnings decline on weaker unit contributions

Tycoon Lucio Tan-led conglomerate LT Group Inc. saw a 61-percent year-on-year drop in first-quarter net profit to P1.61 billion due to slower earnings from the banking, tobacco and real estate units alongside the loss incurred by its hard liquor business.

Banking unit Philippine National Bank contributed P748 million to LTG’s earnings, 46 percent of total profit, followed by tobacco business at P576 million or 36 percent of total. Beverage unit Asia Brewery Inc. accounted for P263 million or 16 percent while Eton Properties added P29 million.

On the other hand, Tanduay Distillers ended the quarter with a net loss of P11 million due to higher cost of raw materials as well as higher selling and marketing expenses.

On Friday, the holding firm also detailed the performance of its key subsidiaries during the first quarter year-on-year.

PNB posted a net profit of P1.35 billion, 65 percent lower year-on-year due to lower trading gains this year compared to last year.

Income from tobacco, meanwhile, dropped by 63 percent to P576 million, attributed to “illicit” trade in cigarettes as well as another round of excise tax increases starting Jan. 1.

Asia Brewery grew its net profit by 15 percent to P263 million, citing the market-leading positions of Cobra energy drink (with 70 percent market share), water brands Absolute and Summit (about a third of the market) and Tanduay Ice (90 percent market share) alongside the re-launch of Colt45.

For its part, Eton Properties posted a 74 percent decline in net profit to P29 million as the construction of One Centris and First Homes Makati were put on hold “to give way to design improvements.”

Finally, Tanduay Distillers incurred a loss of P11 million.