Tobacco, banking boost LT Group’s Q1 profits

THE attributable profit of the LT Group, Inc. (LTG) jumped by 61% in the first quarter of 2018, boosted by its tobacco and banking units.
In a statement issued Friday, LTG said that the net income attributable to equity holders of the parent reached P3.63 billion for the first three months of the year, higher than the P2.25 billion it posted in the same period last year.
The tobacco business accounted for 65% of the company’s attributable profit at P2.35 billion. LTG’s 49.6% stake in PMFTC, Inc. yielded it an equity in net earnings of P2.29 billion.
The listed conglomerate attributed the increase to the government’s actions against the illicit trade in tobacco products particularly smuggled international and locally produced products. LTG said this gave it a level playing field to work in and allowed it to pass on the increase in excise taxes to the consumers.
Its banking unit, Philippine National Bank (PNB), posted a net income of P1.5 billion, 18% higher than the P1.27 billion booked in the same period last year.
The lender’s net interest income went up by a fourth to P6.43 billion, supported by a 17% rise in loans and receivables to P504 billion.
The earnings of Asia Brewery, Inc. (ABI) were flat at P149 million, despite an 8% jump in revenues to P3.4 billion. The unit blamed the weakening peso for the higher cost of raw materials, as well as lower margins given the product mix it offers.
The company cited the dominant market positions of its Cobra Energy Drink and Vitamilk soymilk brands for the revenue increase. The Absolute and Summit brands likewise got the second largest market share in the bottled water category.
Net income of Tanduay Distillers, Inc. (TDI) dropped 35% to P207 million for the quarter, weighed down by higher selling and advertising expenses. The company also increased prices following the implementation of higher excise taxes, prompting a 2% climb in liquor revenues to P3.7 billion
Eton Properties Philippines, Inc. improved its earnings by 29% to P97 million for the period, on the back of an 8% uptick in revenues to P579 million.
The company benefited from higher lease rates alongside the addition of 5,200 square meters in Centris Walk at the Centris complex in Quezon City.
This year, LTG is rolling out P10 billion to P11 billion in capital expenditures for the development of more projects under Eton Properties. The company will also be upgrading the technology systems of PNB.
Shares in LTG closed flat at P21.55 each at the Philippine Stock Exchange on Friday. — Arra B. Francia