LTG nets P2.16 B in first half of 2014
MANILA, Philippines—The LT Group Inc. of Lucio Tan saw a 68.9-percent decline in first semester net profit to P2.16 billion in the mostly due to the slowdown in earnings contribution from its banking and tobacco businesses.
Meanwhile, LTG’s hard liquor unit incurred losses while the property unit contributed a modest income. The beer unit posted a double-digit growth in profits.
Banking unit Philippine National Bank’s attributable net income contribution to LTG amounted to P1.03 billion or 48 percent of total while the tobacco business contributed P720 million or 33 percent, followed by beer-maker Asia Brewery Inc. (ABI) with P628 million or 29 percent.
Eton Properties accounted for P38 million or 2 percent of attributable income while Tanduay Distillers Inc. posted P172 million net loss.
PNB’s contribution declined in the absence of large trading gains that boosted comparative profits last year.
On the other hand, income from the tobacco business fell by 72 percent to P720 million. LTG’s equity in net earnings from its 49.6 percent stake in Phillip Morris Fortune Tobacco Corp. amounted to P687 million.
“PMFTC continues to be adversely affected by the illicit trade in cigarettes,” the company said.
“The Bureau of Customs has taken action by closing down the customs bonded warehouse of a competitor and assessed it for custom duties. PMFTC is awaiting the release of the implementing rules and regulations (IRRs) of the internal revenue stamps integrated system (IRSIS),” the company said.
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