LT Group profits lifted by bank, liquor businesses

Published May 12, 2021, 6:00 AM

by James A. Loyola

LT Group, Inc., the investment holding company of taipan Lucio Tan, reported a 4.5 percent improvement in attributable net income to P6.49 billion in the first quarter of 2021 from the P6.21 billion earned in the same period last year.  

In a disclosure to the Philippine Stock Exchange, the firm said subsidiary Philippine National Bank (PNB) contributed P1.02 billion or 16 percent of total attributable net income.

The tobacco business accounted for P5.01 billion or 77 percent of total, Tanduay Distillers, Inc. (TDI) added P233 million or 4 percent, and Asia Brewery, Inc. (ABI) contributed P211 million or 3 percent.

Eton Properties Philippines, Inc. (Eton) accounted for P149 million or 2 percent, while the 30.9 percent stake in Victorias Milling Company, Inc. (VMC) added P66 million or 1 percent. 

In March, LTG declared a P0.15 per share regular cash dividend and a P0.09 per share special cash dividend. The total dividends of P0.24 per share or P2.60 billion were paid on April 13, this is equivalent to 12.4 percent of LTG’s 2020 attributable net income.

PNB’s net income under the pooling method was P1.83 billion in the first quarter of 2021, 33 percent higher than the first quarter of 2020, primarily due to lower provisions for credit losses.

LTG’s tobacco business had a net income of P5.03 billion in the first quarter of 2021, P24 million more than the P5.01 billion in the same period last year.  

The tobacco industry’s volume was estimated at 13.1 billion sticks in the first quarter of 2021, 14 percent lower than the 15.3 billion sticks in the same period last year due to additional excise taxes.

Illicit activities have also been rising, which include smuggled and locally produced products. 

TDI’s net income for the first three months of 2021 was P235 million, 18 percent higher than the P199 million in the same period last year due to the 5 percent increase in the volume of liquor sales and higher rectified alcohol sales.    

ABI’s net income for the first quarter of 2021 was P211 million, 185 percent more than the P74 million in the comparative period last year, due to the absence of losses from the AB Heineken joint venture as the partnership transitions starting 2021 to the engagement of ABI to brew and distributeHeineken® and Tiger® beers in the Philippines.

Revenues declined 13 percent due to lower volume of bottled water and soymilk. 

Eton’s net income for the first quarter of 2021 was P150 million, 11 percent lower than the P169 million posted in the same period of 2020, dueto the decline in residential unit sales and lower leasing income.