Tobacco, bank units lift LTG Q1 earnings to P7.24 billion

LT Group president Lucio Tan III —CONTRIBUTED PHOTO

MANILA, Philippines — LT Group Inc. (LTG) delivered P7.24 billion in earnings for the January to March period, up 13 percent to hit its highest first-quarter performance in 12 years, on gains from its tobacco and banking units.

Philippine National Bank (PNB) contributed P3.42 billion, or 47 percent, to the group’s total bottom line, while Fortune Tobacco Corp. (FTC) added P2.8 billion, or 39 percent.

On a standalone basis, PNB, the country’s eighth-largest bank, saw its net profit jump by 15 percent to P6.1 billion on the back of its loan book expansion, as well as trading and foreign exchange gains.

READ: PNB Q1 earnings up 15% on growth of loan portfolio

FTC grew its earnings by 6 percent to P2.81 billion on growth in PMFTC Inc. While PMFTC’s volume was flat at 5.6 billion sticks, FTC’s bottom line was buoyed by cigarette price increases.

Tanduay Distillers Inc. doubled its net income to P528 million during the period, supported by its revenues growing by a fifth to P7.2 billion.

Improved sales volume and higher selling prices in the liquor segment contributed to growth, offsetting the increase in costs.

Asia Brewery Inc. saw a 15-percent uptick in profit to P178 million because of lower discounts provided to distributors and a decline in fixed manufacturing costs. Revenues of the beverage segment had a slight 2-percent dip to P4.31 billion as Cobra sales volume declined.

Real estate segment Eton Properties Philippines Inc. grew its earnings during the quarter by 24 percent to P144 million as real estate sales grew, particularly in Quezon City and Laguna province.