LT Group first-half net profit surges by 65% to P3.57B

LT GROUP Inc. led by tycoon Lucio Tan reported a 65-percent growth in six-month net profit to P3.57 billion, on higher earnings from its banking, hard liquor and property businesses.

On the other hand, the tobacco business continued to be affected by the “illicit trade” in cigarettes, LTG said.

Equity in net earnings from the 49.6-percent stake in Philip Morris Fortune Tobacco Corp. amounted to P420 million, lower than the P687 million equity in net earnings recorded in the same period last year.

Banking arm Philippine National Bank accounted for 60 percent of LTG’s equity earnings. The bank’s net profit in the first six months grew by 32 percent year-on-year to P4.1 billion on higher interest earnings and service fee income alongside P1.8 billion worth of asset sale during the period.

Beer unit Asia Brewery Inc. (ABI) contributed P523 million or 15 percent of total attributable earnings.

“ABI’s brands Cobra (carbonated energy drink), Absolute and Summit (water), and Tanduay Ice (alcopop) continue to be market leaders. However, the intense competition in the beverage market affected volumes and margins,” the conglomerate said.

Hard liquor arm Tanduay Distillers Inc. accounted for 5 percent of LTG earnings while Eton Properties contributed 3 percent.

Tanduay chalked up a six-month net income of P179 million, a turnaround from the loss of P172 million for the same period last year.

Revenues rose by 2 percent year-on-year as recent price increases made up for the slight decline in sales volume.

Based on a Nielsen survey, Tanduay’s market share improved to 25.2 percent as of end-June compared to 24.2 percent in the previous year.

The company recently launched its latest product offering, 60-proof rum Tanduay Select. It is currently available in Visayas and Mindanao area and will soon be sold in Metro Manila and the rest of Luzon.

On the property business, Eton’s income for the first semester amounted to P114 million, an improvement over the P38 million earnings reported in the same period last year, mostly driven by rental income. Eton plans to construct more business process outsourcing (BPO)-oriented office buildings.

Equity in net earnings from the 20.17-percent stake in sugar firm Victorias Milling Corp. provided P172 million or 5 percent of total.

LTG ended the first semester with a cash balance of P3.6 billion. In June, LTG paid a cash dividend of P0.15 per share or a total of P1.62 billion, equivalent to 37 percent of the previous year’s attributable income. Doris Dumlao-Abadilla