Lucio Tan Group nets P20-B profit
Taipan Lucio Tan’s flagship holding company LT Group Inc. (LTG) weathered the second year of the COVID-19 pandemic with the help of cigarettes and alcoholic drinks despite a decline in sales volume.
LTG said in a statement that net income last year declined 3.7 percent to P20.25 billion, with 86 percent coming from the contribution of its tobacco business under PMFTC Inc., whose brands include Marlboro and Fortune.
LTG said tobacco recorded a net income of P17.50 billion, up 4 percent, but industry-wide volume dropped 10.8 percent to 55.4 billion sticks “due to the impact of the COVID-19 pandemic and the various quarantine protocols on the purchasing power of consumers.”
“Illicit activities have been rising, which includes smuggled and locally produced products,” LTG added while acknowledging government efforts to combat illicit activities.
LTG also warned against aggressive tax hikes on tobacco.
“LTG is not against tax increases, but believes that the hikes should be moderate. Continued price hikes to pass on higher excise taxes may result in further volume declines,” the company said in the statement.
A distant second in profit contribution was Tanduay Distillers Inc. (TDI), whose net income in 2021 rose 11 percent to P1.24 billion. TDI also reported lower liquor sales volume while bioethanol revenues rose.
TDI ended the year with a nationwide market share for distilled spirits at 26.6 percent from 22.5 percent the previous year. INQ
