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LT Group sees record profit despite cigarette volume drop last year
LT Group sees record profit despite cigarette volume drop last year
LT Group Inc., the holding company of taipan Lucio Tan, reported a 14 percent improvement in attributable net income to a record high of ₱28.92 billion last year from the ₱25.42 billion reported in 2023 on the back of strong growth in its tobacco, banking, liquor, and beer businesses.
In its disclosure to the Philippine Stock Exchange, the firm said Fortune Tobacco Corporation (FTC) contributed ₱12.72 billion or 44 percent of total earnings.
Philippine National Bank (PNB) added ₱11.89 billion or 41 percent, while Tanduay Distillers Inc. (TDI) and Asia Brewery Inc. added ₱2.14 billion and ₱836 million, or seven percent and three percent of total, respectively.
Eton Properties Philippines Inc. and Victorias Milling Company accounted for ₱211 million or one percent and ₱492 million or two percent, respectively. Other income was ₱638 million or two percent of total.
Regina Capital Development Corporation Managing Director Luis Limlingan said LT Group's performance was in line with expectations noting that it was fueled by higher revenues across most segments although property earnings declined due to lower leasing income and higher costs.
FTC reported a net income of ₱12.77 billion in 2024, 12 percent higher than the ₱11.38 billion reported in 2023, due to higher dividends received from PMFTC Inc. (a 49.6 percent associate) and higher foreign exchange gains.
PMFTC’s 2024 cigarette volume mirrored the overall industry trend, declining 11 percent to 21.1 billion sticks from 23.8 billion sticks in 2023. The decrease was attributable to affordability issues, rising illicit trade and the growing popularity of vaping.
PNB’s net income under the pooling method was ₱21.18 billion in 2024, ₱2.16 billion or 11 percent higher than the ₱19.02 billion reported in 2023.
Tanduay achieved a record net income of ₱2.15 billion in 2024, 37 percent higher than the ₱1.57 billion in 2023. Higher volume of liquor and bioethanol, by two percent and one percent, respectively, and higher liquor prices boosted segment revenues by 13 percent to ₱33.85 billion in 2024.
TDI’s nationwide market share for distilled spirits, however, slightly declined to 32.2 percent in 2024, compared to 32.9 percent in 2023, due to competitive pressures and impact on consumer purchasing power of inflation and weather disturbances during the year.
Asia Brewery’s net income in 2024 jumped by 46 percent to ₱841 million, compared to ₱578 million in 2023. This was driven by a five percent increase in revenues to ₱18.21 billion from ₱17.38 billion, on account of higher year-on-year sales volume across major product lines.
Eton’s net income in 2024 dropped by 53 percent to ₱212 million, compared to ₱453 million in 2023 due to lower leasing income and higher operating expenses.
Leasing revenues for the period decreased by one percent year-on-year to ₱2.03 billion, due primarily to the decline in occupancy rates and rental prices.
In 2024, Eton recorded ₱501 million in residential sales, driven by the resumption of sales of the remaining inventory in projects at 68 Roces in Quezon City and Eton City, Laguna.