Tobacco, spirits anchor LTG income at P6.4B

MANILA, Philippines — Taipan Lucio Tan’s LT Group Inc. (LTG) saw its earnings in the first three months of the year flat at P6.42 billion due to lower income from some of its major business segments.

LT Group said in a stock exchange filing that its net income during the quarter inched up by 1 percent from P6.38 billion.

The banking business through Philippine National Bank (PNB) accounted for 46 percent of the total net income, followed by Philip Morris Fortune Tobacco Corp. (PMFTC) with 41 percent; and Tanduay Distillers Inc. with 4 percent.

Asia Brewery, Eton Properties Philippines, and Victorias Milling Co. contributed 2 percent each, while 3 percent came from other income sources.

PNB’s net income under the pooling method was up 10 percent to P5.31 billion as its loan portfolio expanded.

Net interest income improved by 12 percent to P11.69 billion, while net service fees and commission income dipped by a quarter to P1.18 billion.

READ: PNB books P5.3 billion in Q1 earnings

Earnings of the tobacco segment under PMFTC slipped by 13 percent during the period, to P2.66 billion due to an 11-percent drop in volume.

READ: Inflation, smuggled cigarettes hurt LT Group’s bottom line

Meanwhile, Tanduay Distillers’ profits registered a 1-percent drop to P255 million as liquor volume dipped by 11 percent.

Tanduay’s market share for distilled spirits was at 31.6 percent against 29.1 percent in the same quarter last year. Most of its sales came from the Visayas and Mindanao markets, according to LT Group.

For Asia Brewery, net income surged 107 percent to P155 million, with Cobra energy drink maintaining market share leadership at 57 percent.

Despite an increase in leasing revenues, Eton’s net income in the January to March period ended 5 percent lower at P116 million. —Meg J. Adonis INQ