Higher PNB contribution tripled LT Group’s H1 profits

Taipan Lucio Tan-led conglomerate LT Group Inc. said net income in the first half jumped over 300 percent to P15.4 billion on higher contributions from Philippine National Bank (PNB).

Total revenues also moved up 3.7 percent to P45.8 billion by the end of June due to “higher beverage and distilled spirits revenues.”

“The banking segment’s higher net contribution in the current period was mainly due to the net reversals of impairment, credit and other losses coming from the reclassification of previously booked nonperforming loans to performing status during the second quarter of the year,” LT Group said in its annual report.

“This was a turnaround from last year’s additional provision for impairment, credit and other losses at P19 billion,” it added.

Increase in excise tax

PNB’s net income in the first half fell to P11.15 billion, down 50 percent from the same period last year due to the absence of a P33.6 billion gain from an asset transfer into PNB Holdings Corp.

The tobacco business, via PMFTC Inc., booked a profit of P7.77 billion in the first semester, lower by 14 percent from the same period last year amid flat sales volumes.

“The lower profits can be attributed to the increase in excise taxes that PMFTC had to absorb as a price increase was only implemented in the end of March 2022. There was no price increase in 2021, and the previous one was in October 2020,” LT Group said.

Tanduay Distillers Inc. net income also dropped 7 percent to P564 million despite liquor and bioethanol volumes growing 10 percent and 25 percent, respectively, due to higher raw material and fuel prices.

At the end of June, its nationwide market share for distilled spirits was at 28.5 percent from nearly 27 percent at the end of June last year.

Asia Brewery Inc.’s net income also shrank 14 percent to P294 million.

“Despite the higher volumes of its products, higher raw material, fuel and other costs resulted in lower profits,” LT Group said.

Eton Properties Philippines Inc. reported a 10 percent profit drop to P258 million.

Projects in the pipeline include Eton City Square in Sta. Rosa, Laguna, which will add 5,824 square meters of net leasable space. Meanwhile, the residential component of

Blakes Tower will add 13,900 square meters of leasable area. Eton currently has a leasing portfolio of 237,000 square meters.

—Miguel R. Camus INQ