LT Group, Inc. (LTG) reported that its attributable net income grew 0.61% to P6.53 billion in the first quarter of the year, with its tobacco business contributing the biggest share.
In a statement, the holding firm of Lucio C. Tan’s diversified investments, said its tobacco business accounted for P4.21 billion or 64% to the total.
“The industry’s volume was estimated at 15.6 billion sticks, 19% higher over the same period last year, primarily due to the easing of COVID-19-related restrictions,” LT Group said in a statement.
Despite the higher volume, the business segment’s first-quarter net income came in lower at P4.22 billion from P5.02 billion previously.
The company said that since there was no price increase implemented in 2021 and most of the first quarter, the lower profit can be attributed to the P5 increase in excise taxes that PMFTC, Inc. had to absorb starting Jan. 1, 2022.
PMFTC is the Philippine affiliate of Philip Morris International and is jointly owned by LT Group.
Meanwhile, LT Group’s banking unit contributed P1.61 billion or 25% to the total net income.
Publicly listed Philippine National Bank (PNB) reported that its net income jumped 57% to P2.86 billion. The bank’s net interest income rose by 3% to P8.53 billion while net service fees and commission income ended lower by 3% to P1.25 billion.
Tanduay Distillers, Inc. contributed 5% or P330 million to LT Group’s total earnings for the first quarter. Its net profit was up 42% to P333 million.
“Liquor volume was slightly higher while bioethanol volume had a higher growth of over 60%,” the firm added.
Eton Properties Philippines, Inc. contributed P127 million or 2% to the total. It reported a bottom line of P128 million in the first quarter, 15% lower than the level recorded a year earlier.
Projects in the pipeline include Eton City Square in Sta. Rosa, Laguna that will add 5,824 square meters (sq.m.) of net leasable space. The residential component of Blakes Tower will also add 13,900 sq.m. of leasable area.
Eton Properties currently has a leasing portfolio of 237,000 sq.m.
Meanwhile, Asia Brewery, Inc. accounted for P80 million or 1% of the total, with its net profit for the first quarter dropping by 62% to P80 million from P211 million.
“Despite the higher volumes for its products, higher raw material, fuel and other costs resulted in lower profits,” LT Group said.
Of its products, Cobra energy drink remained the market leader with a 58% market share in the first quarter.
In March, the company declared a total of P0.30 per share dividends, regular and special, or P3.246 billion, which was paid on April 12. This is equivalent to 16% of LT Group’s 2021 attributable net income.
At the stock exchange on Friday, LT Group shares dropped by 2.29% or P0.19 to close at P8.10 apiece — Luisa Maria Jacinta C. Jocson
