LT Group president Lucio Tan III —CONTRIBUTED PHOTO
Taipan Lucio Tan’s flagship firm LT Group Inc. said net income during the first quarter of 2023 slipped 2 percent to P6.38 billion as major business segments slowed.
LT Group said its tobacco business represented by Philip Morris Fortune Tobacco Corp. (PMFTC) accounted for 48 percent of earnings, followed by Philippine National Bank (43 percent), Tanduay Distillers (4 percent), and Eton Properties Philippines (2 percent). The remainder came from Asia Brewery, Victorias Milling Co. and other income sources.
The tobacco arm’s net income sank 28 percent to P3.06 billion due to a 27.5-percent drop in volume. For PMFTC, volume from March to January this year fell over 31 percent.
PNB’s net income, using the pooling method, grew to P4.83 billion from P2.83 billion last year.
Earnings were lifted by a P1.98-billion net gain from the sale of repossessed assets, compared to P104 million in the first quarter last year.
PNB’s net interest income and service fee and commission income improved while operating expensed jumped 44 percent on higher credit expenses.
Tanduay Distillers’ net income shed 23 percent to P258 million from a year ago.
“Both the volume of liquor and bioethanol were lower, the latter due to the closure of Asian Alcohol Corp. in October 2022,” LT Group said.
Tanduay ended the quarter with a 29.1-percent nationwide market share in distilled spirits.
Eton’s first quarter net income slipped 5 percent to P122 million as leasing revenues declined by 3 percent.
“Eton currently has a leasing portfolio of around 287,000 square meters, of which close to 192,000 is for office space,” the company said.
Asia Brewery also saw net income drop 6 percent to P75 million.
“Revenues were slightly lower as most products saw a decline in volume. Cobra energy drink maintained its leadership with a market share of 60.6 percent while bottled water brands Absolute and Summit have the third-largest share at 19.4 percent,” LT Group said.