LT Group 9-month profit up 84%
Tycoon Lucio Tan-led conglomerate LT Group Inc. grew its net profit in the first nine months by 84 percent year-on-year to P12.6 billion on higher earnings from its tobacco, banking, distilled spirits and property businesses.
Including earnings attributable to minority interest, LTG’s nine-month net profit hit P16 billion, up 79.6 percent from the previous year’s level.
The tobacco business grew its net profit by 137.9 percent year-on-year to P6.9 billion during the January to September period. The business under PMFTC Inc. is reaping the benefits of the government’s crackdown against illicit cigarette trading.
Net income of banking arm Philippine National Bank was up 65 percent year-on-year to P7.6 billion in the first nine months. PNB posted higher core earnings and gains from the sale of foreclosed assets.
Net income from the distilled spirits segment rose by 61.4 percent year-on-year to P722 million in the first nine-months mainly dude to improvement in sales of Tanduay Five Years rum, the company’s flagship product and bioethanol revenues.
The property business delivered a nine-month net income of P314 million, 27.6 percent higher year-on-year. Rental revenue for the first nine months grew by 7 percent over the same period last year.
The beverage segment posted a net income of P291 million in the first nine months, lower by 36 percent year-on-year. Its gross profit margin fell to 26.9 percent from 30.9 percent as a result of product mix, higher purchase price of raw materials, fuel and oil as well as the excise tax on sweetened beverages.
Equity in net earnings from the 30.9-percent stake in sugar firm Victorias Milling Corp. contributed P115 million.
Consolidated revenue hit P54.5 billion in the first nine months, 15.6 percent up from year-ago level.
Cost of sales and services rose 15 percent to P25.4 billion in the the first nine months. —DORIS DUMLAO-ABADILLA
