LT group profit up 33%

Tycoon Lucio Tan-led conglomerate LT Group Inc. saw its nine-month net profit jump by 33 percent year-on-year to P6.25 billion on higher earnings across its banking, tobacco, beer, rum and property businesses.

The banking business under Philippine National Bank accounted for 41 percent of attributable income while tobacco had a share of 29 percent. Asia Brewery Inc. accounted for 14 percent while Tanduay Distillers Inc. had an 11-percent share.

Property arm Eton Properties accounted for 4 percent while equity in net earnings from sugar firm Victorias Milling Co. Inc. represented 2 percent of the total.

PNB posted a net income of P5.9 billion, marking a 12 percent growth year-on-year.

Income from the tobacco business reached P1.8 billion for the first nine months, more than three times better than the level in the same period last year. The increase was attributed mainly to the change in the mix of Philip Morris Fortune Tobacco Corp.’s sales, with premium Marlboro accounting for a higher share in the total volume.

Beverage arm Asia Brewery Inc. saw a 29-percent growth in nine-month net profit to P895 million.

“Cobra energy drink, Tanduay Ice alcopop and Vitamilk soymilk continue to be market leaders, while Absolute and Summit bottled water had the second largest market share,” the group reported.

Tanduay’s nine-month net profit reached P679 million, doubling the level in the same period last year, as the bioethanol business started contributing earnings in 2016. Liquor volume was, however, relatively flat.

The market share of Tanduay based on Nielsen’s customer off-take on volume was at 25 percent as of end-September, maintaining the level seen a year ago. Tanduay claims the largest share of the rum market in the Visayas at 63 percent and in Mindanao, at 64 percent.

Property arm Eton reported a net profit of P249 million in the first three quarters, 26 percent more than the level a year ago. Revenue increased by 17 percent year-on-year to P2.2 billion due to the growth in leasing revenues. Eton enjoyed higher lease rates at the fully leased out business process outsourcing (BPO) office buildings with a gross leasable area (GLA) of about 124,000 square meters.

Eton broke ground for the fifth BPO office tower at Eton Centris in Quezon City in August. It will have a GLA of about 37,000 square meters and is expected to take two years to complete.

Moreover, the 5,000-square-meter expansion of the retail space at Centris Walk in Eton Centris, which commenced in April 2016, was targeted for completion in the second quarter of 2017.