LT Group Inc., the holding firm of tycoon Lucio Tan’s businesses, said its income rose 22 percent from January to March to P4.42 billion from last year’s P3.63 billion, on strong revenues from its tobacco business.
The tobacco business accounted for P2.84 billion or 64 percent of the total attributable income, while Philippine National Bank (PNB) contributed P1.08 billion or 24 percent of total.
Liquor maker Tanduay Distillers Inc. added P229 million or 5 percent, Eton Properties Philippines Inc. accounted for P48 million or 3 percent while Asia Brewery Inc. provided P82 million or 2 percent of total.
LT Group’s 30.9-percent stake in sugar firm Victorias Milling Co. Inc. accounted for P75 million, also 2 percent of its income.
PNB’s net income under the pooling method rose 30 percent to P1.95 billion for the period as loans and receivables grew 17 percent. Trading and foreign-exchange gains increased to P856 million from P38 million last year.
Its tobacco business reported a net income of P2.85 billion for the period, 21 percent more than last year’s P2.36 billion. Equity in net earnings from its 49.6-percent stake in PMFTC Inc. reached P2.69 billion, 18 percent higher than the previous year.
PMFTC is the combined company of Tan’s Fortune Tobacco Inc. and Philip Morris Philippines.
“The improvement in earnings was due to the volume mix and the price increase of Fortune in December 2018,” the company said.
The industry’s volume declined to an estimated 73 billion sticks in 2018 from 109 billion sticks in 2012, a decrease of 33 percent over a six-year period.
Excise taxes increased starting 2013, under Republic Act 10351 and the current RA 10963 starting 2018. The excise tax is currently at P35 per pack, from a low of P2.72 per pack of 20 sticks in 2012 for the lower tier and P12 per pack for the upper tier.
Meanwhile, the income of Tanduay Distillers reached P234 million, 73 percent more than the P135 million last year.
Revenues from liquor increased on the back of a 5-percent growth in volume, while bioethanol sales also improved.
The company said Tanduay’s nationwide market share for distilled spirits was at 28.1 percent as of March 2019, higher than last year’s 26.1 percent.
Eton, the property developer, ended the quarter with a net income of P149 million, more than half higher than last year’s P97 million.
Revenues were 11 percent higher year-on-year coming from leasing and sale of residential units.
Eton Square Ortigas, a stand-alone pocket retail development located at Ortigas Avenue in San Juan, was completed in 2018 and is fully leased out, with all tenants lined up for opening within the first half of 2019.
The retail and office components of Eton WestEnd Square in Makati City is targeted for completion by the end of 2019.
Other projects in the pipeline are Eton City Square 1, the neighborhood retail and commercial center in Eton City, Santa Rosa, Laguna; and NXTower I, an office building located between Emerald Avenue and Ruby Road in Ortigas, Pasig City.
Asia Brewery’s net income for the period, meanwhile, was at P82 million, a drop of 45 percent from P149 million last year.
“The lower income was largely due to higher PET packaging costs and as the company spent more on advertising and promotions,” it said.
Revenues rose 13 percent to P3.86 billion due to higher revenues from energy drinks, bottled water, packaging and soy milk.