LUCIO TAN-LED conglomerate LT Group Inc. (LTG) grew its first quarter net profit by 40 percent to P2.2 billion on higher earnings across its tobacco, banking, beer, liquor and property businesses.
The tobacco business was the single biggest contributor of profits at 42 percent of total. This was followed by banking arm Philippine National Bank (PNB) with a contribution of 32 percent. Beer unit Asia Brewery Inc. contributed 16 percent while Tanduay Distillers Inc. and property arm Eton Properties Philippines had a share of 4 percent and 3 percent, respectively.
Equity in net earnings from its stake in Victorias Milling Company Inc. contributed 4 percent to the total. Last February, LTG increased its stake in the sugar firm to 30.17 percent from 22.59 percent as of end-2015.
The tobacco business posted a net income of P949 million in the first quarter, significantly higher than the P411 million in the same period last year.
Equity in net earnings from LTG’s 49.6 percent stake in Philip Morris Fortune Tobacco Corp. (PMFTC) reached P913 million, 120 percent higher year-on-year. “While the company saw some improvement, illicit trade continued to affect the overall profitability of the cigarette business,” the firm said.
Philippine National Bank’s net profit reached P2.6 billion for the first quarter, 85 percent more than the level in the same period last year. Net interest income was 13 percent higher year-on-year at P4.6 billion while net service fees and commission income increased by 18 percent to P846 million.
For beer unit Asia Brewery, net profit for the first three months amounted to P350 million, 16 percent higher year-on-year. The group said Cobra energy drink, Absolute and Summit water, Tanduay Ice alcopop and Vitamilk soymilk were still market leaders.
“Volumes of most products were higher compared to last year, largely due to the exceptionally hot summer and some impact from election-related spending,” LTG said.
For Tanduay, first quarter net income rose by 9 percent to P82 million. Revenues were slightly higher as the contribution from bio-ethanol offset lower revenues from distilled spirits.
Eton’s earnings for the first quarter amounted to P62 million, 22 percent higher than the level in the previous year.