LT Group attributable profit surges on higher PNB gains

LT GROUP, Inc. (LTG)’s attributable profit surged by 57% in the third quarter of 2018, boosted by the growth of its banking unit and an improving environment for the tobacco business.
In a regulatory filing, the holding firm of tycoon Lucio C. Tan, Sr. posted a net income attributable to the parent of P3.61 billion as revenues climbed 19% to P18.91 billion.
This almost doubled the company’s attributable profit on a nine-month basis, rising 84% to P12.57 billion. Revenues meanwhile rose by 16% to P54.47 billion.
The tobacco business accounted for 54% of LTG’s attributable profit, followed by banking that provided 34%. The liquor unit, property, beverage, and milling, meanwhile, accounted for 6%, 3%, 2%, and 1% of the company’s earnings, respectively.
Fortune Tobacco Corp., which holds LTG’s stake in PMFTC, Inc., recorded a net income of P6.86 billion for the period. Equity in net earnings from LTG’s 49.6% stake in PMFTC amounted to P6.7 billion.
PMFTC has seen its sales volume decline by 45% over a five-year period from 2013 to 2017 due to higher excise taxes and the impact of illicit trade. As of end-September, the company said it has been able to pass on price increases, allowing it to “no longer price our products at economically unsustainable levels.”
The banking unit through the Philippine National Bank (PNB) grew its net income by 65% to P7.63 billion, from P4.64 billion in the same period a year ago. The company attributed the uptick to a net gain of P3 billion from the sale of Real and Other Properties Acquired (ROPA).
Without the gain from ROPA, PNB’s net income would have stood at P4.65 billion, 8% higher year-on-year.
Tanduay Distillers, Inc. (TDI) meanwhile booked a 65% profit increase to P722 million, following a 10% uptick in revenues to P13.66 billion due to higher volumes of liquor and bioethanol sold.
TDI hikes its market share to 28.3% by end-September, from 26.1% in the same period a year ago, thanks to the Visayas and Mindanao regions where it gets most of its sales.
For Eton Properties Philippines, Inc., net income jumped by 28% to P314 million. Revenues went up by 9% to P1.88 billion on account of increased residential sales and leasing revenues. The company benefited from the addition of 5,200 square meters of leasing space to Centris Walk in Quezon City last December.
Earnings of Asia Brewery, Inc. declined by 36% to P291 million, amid a 6% increase in revenues due to higher selling prices for the period.
Shares in LTG gained 0.13% or two centavos to close at P15.12 each on Monday.