LUCIO C. TAN-led conglomerate LT Group, Inc. said its first-half attributable net income reached P12.8 billion, down by 2% from P13 billion last year, amid a decline in its tobacco business.
First-half revenue increased by 13.2% to P61.13 billion from P54 billion a year ago, LT Group said in a regulatory filing on Tuesday.
Among business segments, Philippine National Bank (PNB) contributed P5.77 billion, or 45% of the total net income, followed by the tobacco business at P4.87 billion, or 38%.
Tanduay Distillers, Inc. and Asia Brewery, Inc. (ABI) added P712 million and P508 million, respectively, or 6% and 4% each.
Eton Properties Philippines, Inc. and Victorias Milling Co., Inc. accounted for 2% each, at P326 million and P277 million, respectively. Other income was at P336 million, or 3%.
LT Group’s tobacco business recorded a 16% drop in net profit to P4.89 billion from P5.85 billion a year ago.
Most of the tobacco business’s income comes from its share of profits from the 49.6% stake in PMFTC, Inc., which totaled P4.43 billion. This is a 22% decrease from P5.68 billion last year.
PMFTC’s volume for the first half dropped by 14% to 10.6 billion sticks. The industry’s volume, excluding illicit trade, was 8% lower at 20 billion sticks from 21.7 billion sticks last year due to affordability challenges among consumers, increasing illicit incidence, and the proliferation of vaping products.
For the banking business, PNB’s net profit under the pooling method rose by 5% to P10.29 billion. Loans and receivables rose by 7% to P632 billion, while net interest income climbed to P24.03 billion.
Net service fee and commission income fell by 27% to P2.27 billion.
In the beverage business, ABI grew its net profit by 49% to P509 million from P340 million a year ago.
Revenues increased by 12% to P9.4 billion from P8.41 billion on higher sales volume across product lines. The Cobra energy drink maintained its leadership at a 56% market share, while bottled water brands Absolute and Summit had the third-largest share at 18%.
Meanwhile, Eton Properties grew its net income by 59% to P327 million from P206 million. Leasing revenues increased by 5% to P1.01 billion on higher occupancy rates and lease rates.
The property developer recorded P105 million in residential sales as the company resumed selling the remaining inventory of projects 68 Roces in Quezon City and Eton City in Laguna.
Eton Properties currently has a leasing portfolio of 288,000 square meters (sq.m.), of which close to 192,000 sq.m. is for office space.
On Tuesday, LT Group shares fell by 0.2% or two centavos to P9.90 apiece. — Revin Mikhael D. Ochave
