Tycoon Lucio Tan-led conglomerate LT Group Inc. (LTG) booked a net income of P21.02 billion last year, down by 9.1 percent from the previous year amid the challenging economic environment caused by the COVID-19 pandemic.
The decline in group-wide earnings, however, was tempered by the higher earnings contributed by the tobacco and alcohol businesses.
The tobacco business under PMFTC accounted for P16.9 billion, or 80 percent of the total. It was 9 percent more than its profit in the previous year despite a slowdown in sales volume. The outperformance was attributed to the increase in the share of premium brand Marlboro—with customers shifting from mid-priced Fortune—and the price increases to pass on higher excise taxes.
Across the tobacco industry, volume declined by an estimated 12 percent in 2020 due to higher prices and mobility restrictions arising from the COVID-19 pandemic.
PMFTC reported a 16-percent drop in sales volume last year.
Banking arm Philippine National Bank contributed P1.55 billion, or 7 percent, of total attributable income of LTG, while Tanduay Distillers Inc. (TDI) shared P1.10 billion, or 5 percent.
Eton Properties Philippines Inc. accounted for P799 million, or 4 percent, while Asia Brewery Inc. contributed P583 million, or 3 percent.
LTG’s 30.9-percent stake in sugar firm Victorias Milling Company Inc. accounted for P264 million, or 1 percent of earnings.
TDI’s net income for 2020 was P1.12 billion, 65 percent higher than the previous year, due to the increase in the volume of sales and the 34-percent drop in selling and marketing expenses.