LT Group posted P2.5-B profit in 9 months

Lt Group Inc. reported an attributable net income of P2.5 billion in the first nine months of 2014, down from P7.6 billion in the same period in 2013, due to the difficult operating environment of its various businesses.

Philippine National Bank’s attributable net income contribution to LTG amounted to P1.3 billion or 52 percent of the total. Asia Brewery Inc. (ABI) contributed P796 million or 32 percent of the total, followed by the tobacco business at P462 million or 19 percent. Eton Properties accounted for P65 million or 3 percent of the total while Tanduay Distillers Inc. (TDI) posted an P83-million loss.

LTG’s balance sheet remained strong with the parent company’s cash balance at P9.9 billion as of end-September 2014. Debt-to-Equity Ratio was at 3.31:1 as of the end of September 2014 with the bank, and at 0.19:1 without the bank.

PNB reported a profit of P3.7 billion in the first nine months this year, 46 percent lower than the P6.8 billion net income posted in the same period last year. This is largely due to higher trading gains in 2013. In 2013, PNB booked P7.6 billion in trading gains, up from the P1.2 billion realized in 2014.

In the meantime, net interest income was 21 percent higher year-on-year at P12.3 billion on the back of lower costs, coupled with the 14-percent year-to-date growth in loans.

ABI’s net income in the first nine months of 2014 reached P797 million, 27 percent higher than the P626 million reported in the same period in 2013.

ABI brands Cobra (carbonated energy drink), Absolute and Summit (water) remained market leaders. Tanduay Ice cornered more than 90 percent of the alcopop market.

LTG’s income from the tobacco business hit P462 million in the first nine months of 2014, down from the P2.8 billion reported in 2013, as PMFTC continued to be adversely affected by suspected illicit cigarette trading in the country.

The Bureau of Customs (BoC) has taken action by closing down the customs bonded warehouse of a competitor and assessed it for custom duties of more than P1 billion. As the assessment only covers 2013 imports, the BOC continues to review the company’s importation in the past three years.

In the meantime, the Government’s Internal Revenue Stamps Integrated System (IRSIS) is facing delays due to technical issues with stamp production. The Bureau of Internal Revenue (BIR) has issued another amendment to its Revenue Regulations and implementation has been moved to Dec. 1.