LT Group Inc., the diversified holding company of taipan Lucio Tan, reported a three percent increase in first-quarter profit as growth in its banking and tobacco units offset the slowdown in its beverage segment.

In a filing to the Philippine Stock Exchange, the firm said that its attributable net income rose to ₱7.49 billion in the three months ended March 31, compared with ₱7.24 billion a year earlier.

Philippine National Bank (PNB), the group’s banking arm, remained the primary engine of growth, contributing ₱3.58 billion, or 48 percent of the total bottom line. The lender’s individual net income climbed five percent to ₱6.37 billion during the period from ₱6.09 billion a year ago, supported by sustained performance in its core operations.

The group’s tobacco interests, represented by Fortune Tobacco Corp., contributed ₱2.85 billion, accounting for 38 percent of total earnings. Fortune Tobacco reported a standalone net income of ₱2.86 billion, a two percent rise from ₱2.81 billion in the first quarter of 2025.

This growth was largely driven by higher dividend income from PMFTC Inc., a venture in which LT Group holds a 49.6 percent stake. The dividends helped mitigate a decline in equitized earnings, which fell to ₱2.60 billion from ₱2.76 billion due to lower cigarette sales volumes.

Industry-wide cigarette volumes in the Philippines grew by five percent to 11.8 billion sticks in the first quarter. However, PMFTC’s shipment volumes slipped four percent to 5.4 billion sticks. The company noted that underlying sales volumes remained stable when adjusted for inventory movements. PMFTC implemented price hikes in March 2026 to pass on the impact of the annual fiv percent increase in excise taxes.

Tanduay Distillers Inc. saw its net income rise nine percent to ₱575 million, even as liquor volumes softened. Revenue for the spirits maker increased three percent to ₱7.37 billion as price adjustments successfully compensated for the volume drop.

While freight costs pushed the cost of sales higher, Tanduay’s gross profit margin expanded to 17 percent from 16 percent.

Eton Properties Philippines Inc. contributed ₱154 million to the group, with its individual net income rising to ₱155 million from ₱144 million. The real estate arm benefited from higher rental rates and improved cost efficiencies in its leasing business.

In contrast, Asia Brewery Inc. saw earnings nearly halve, with net income falling to ₱98 million from ₱178 million a year earlier. Segment revenues dropped two percent to ₱4.24 billion, weighed down by lower demand for Cobra energy drinks and a contraction in the packaging business. Victorias Milling Co. and other smaller interests accounted for the remainder of the group’s quarterly gains. (James A. Loyola)