LTG profits drop due to PNB

Published August 11, 2021, 2:48 PM

by James A. Loyola

LT Group, Inc. (LTG) posted a 63 percent drop in attributable net income to P3.73 billion in the first half of 2021 from the P10.03 billion earned in the same period in 2020.

In a disclosure to the Philippine Stock Exchange, the firm said “This is mainly due to the higher provisioning for credit losses booked by its banking subsidiary and the elimination of the gain from the transfer of real estate assets at the consolidated level.”

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LTG’s tobacco business accounted for P8.97 billion of total attributable income, Tanduay Distillers, Inc. (TDI) added P602 million, Asia Brewery, Inc. (ABI) contributed P343 million, while Eton Properties Philippines, Inc. (Eton) accounted for P287 million.

The 30.9 percent stake in Victorias Milling Company, Inc. (VMC) added P169 million. Net expenses and other income at the parent level amounted to Php185 million.

Philippine National Bank (PNB) had a negative net contribution of P6.46 billion after eliminating the gain of P33.60 billion at the consolidated LTG level.

PNB reported a net income of P22.20 billion under the pooling method, inclusive of a P33.60 billion gain from the transfer of some properties into PNB Holdings Corporation.

However, at the consolidated LTG level, these gains were not recognized, which together with higher provisioning for credit losses resulted in a P6.46 billion loss contribution from PNB to LTG.

Net interest income was 3 percent lower at P16.85 billion. Net service fees and commission income were 45 percent higher at P2.45 billion. Trading and foreign exchange gains were 57 percent lower at P1.58 billion.

LTG’s tobacco business had a net income of P9.01 billion in the first half of 2021, 10 percent more than the P8.21 billion in the same period last year.

TDI’s net income rose 11 percent in the first semester of 2021 to P605 million largely due to the 13 percent increase in the volume of liquor sales and 55 percent growth in bioethanol sales.

ABI’s net income jumped to P343 million in the first half of 2021 from the P40 million reported in the same period last year largely due to the absence of any losses from the AB Heineken joint venture as the partnership transitions starting 2021 to the engagement of ABI to brew and distribute Heineken and Tiger beers in the Philippines.

Revenues were relatively flat as the lower volume of bottled water and soymilk were offset by higher volume from Cobra Energy Drink with a market share of 65 percent.

Eton’s net income dropped 29 percent to P288 million in from P404 million in the first half of 2020 due to the decline in residential unit sales and lower leasing income.

 
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