LTG profit up on PNB, tobacco gains

Published March 17, 2018, 12:00 AM

by manilabulletin_admin

By James A. Loyola

LT Group, Inc. (LTG), the flagship of taipan Lucio Tan, reported a 15 percent improvement in unaudited attributable net income to P10.83 billion last year from the P9.39 billion earned in 2016.

Philippine National Bank (PNB) contributed P4.83 billion or 45 percent of total attributable income, followed by the tobacco business at P4.39 billion or 40 percent of total. Tanduay Distillers, Inc. (TDI) added P631 million or 6 percent, while Asia Brewery, Inc. (ABI) accounted for P551 million or 5 percent.

Eton Properties Philippines, Inc. (Eton) provided P348 million or 3 percent, and the 30.9 percent stake in Victorias Milling Company, Inc. (VMC) contributed P174 million or 2 percent.

PNB’s net income was P8.56 billion in 2017 while income from the tobacco business was P4.40 billion in 2017 as equity in net earnings from the 49.6 percent stake in PMFTC, Inc. (PMFTC) reached P4.37 billion.

The higher earnings were mainly attributed to better pricing and improved mix. In November 2016, PMFTC raised the price of Marlboro, the first time since 2013.

TDI’s net income was at P631 million last year, 31 percent lower than the P908 million reported for 2016 although liquor revenues were 20 percent higher at P15.19 billion.

This is because revenues from ethanol were 31 percent lower at P1.60 billion as volume dropped 21 percent, and selling prices were lower.

ABI’s net income for 2017 was at P552 million for 2017, 69 percent lower than 2016’s P1.76 billion, primarily due to higher spending on new products.

Moreover, 2016’s income included a P594-million extraordinary income arising from the gain from the revaluation of the beer assets.

Eton’s net income for 2017 was P348 million, 11 percent lower than 2016’s P390 million. Revenues were 21 percent lower at P2.23 billion with lower sales due to the change in strategy to focus on increasing its recurring income base. Leasing revenues were 9 percent higher at P1.39 billion.