Tobacco unit pinches LT Group bottom line
The six-month profit of LT Group Inc., the listed holding company led by taipan Lucio Tan, flatlined on lower returns from its tobacco business, which was hit by the proliferation of vaping products and illicit trade.
LT Group on Tuesday said earnings during the January to June period ended at P12.8 billion, down 2 percent.
Philippine National Bank (PNB) contributed the biggest income share at P5.77 billion, or 45 percent of the total.
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The country’s seventh-largest bank, in terms of assets, saw its net income go up by 5 percent as its loan portfolio grew.
PNB’s net interest income jumped by 11 percent to P24.03 billion.
Article continues after this advertisementThe group’s tobacco business, meanwhile, booked lower profits due mainly to losses from illegal trade and the rising popularity of vaping products.
Article continues after this advertisementAccording to LT Group, the segment posted P4.89 billion in earnings during the period, falling by 16 percent.
The business is driven by Philip Morris Fortune Tobacco Corp. (PMFTC), in which LT Group has a 49.6-percent stake.
PMFTC also reported lower earnings at P4.43 billion, representing a 22-percent plunge. This, as volume fell by 14 percent to 10.6 billion cigarette sticks.
Liquor arm Tanduay Distillers Inc. saw a 14-percent leap in earnings, which reached P712 million as volumes rose. —Meg J. Adonis
