LTG net income by end September hits P4.71B

LT Group, Inc. (LTG) reported on Friday that its attributable net income for the first nine months of 2015 reached P4.71 billion, 88 percent more than the P2.50 billion earned in the same period last year.  

The report said Philippine National Bank (PNB) contributed 59 percent to total income at P2.78 billion, followed by Asia Brewery, Inc. (ABI) at P693 million, or 15 percent.  The tobacco business added P523 million or 11 percent to total while Tanduay Distillers, Inc. (TDI) accounted for P337 million or 7 percent.  Eton’s contribution was P196 million or 3 percent. 

Equity in net earnings from the 20.17 percent stake in VMC provided P172 million or 4 percent of the total.

LTG’s balance sheet remained strong, with the parent company’s cash balance at P3.4 billion as of the end of September 2015.  Debt-to-Equity Ratio was at 3.31:1 as of end-September 2015 with the bank, and at 0.12:1 without the bank.

PNB’s income reached P5.26 billion for 2015, 42 percent higher than 2014’s P3.72 billion.  Net Interest Income was 7 percent higher year-on-year (y-o-y), while Net Service Fee Income grew by 37 percent.  Other Income declined by 25 percent to P4.20 billion due to lower trading gains.

ABI’s net income for January to September 2015 amounted to P694 million, a decline of 13 percent from the P797 million of 2014.   

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 continues to affect volumes and margins.

The tobacco business reported an income of P525 million for 2015, 13 percent higher than the P464 million reported for 2014.

Equity in net earnings from the 49.6 percent stake in PMFTC amounted to P533 million, higher than P520 million equity in net earnings in 2014. 

Despite the slightly higher income, the illicit trade continues to adversely affect the overall profitability of the cigarette business. 

TDI’s unaudited net income reached P337 million for the first nine months of 2015, a turnaround from the loss of P83 million for the same period last year.

Revenues were relatively flat, as the slightly lower sales volume was partially offset by higher prices.   

According to Nielsen, TDI’s market share stood at 24.9 percent as of the end of September 2015 compared to 24.2 percent as of end-September 2014. 

Eton’s earnings for 2015 amounted to P197 million, an improvement over the P65 million reported in 2014. 

Rental income continues to account for a significant portion of earnings, with all five existing BPO office buildings fully leased out.  Eton plans to increase its portfolio of office buildings.