LT Group registers net income of P6.83b
LT Group Inc. of tobacco and airline tycoon Lucio Tan increased its nine-month net income by five percent to P6.83 billion from P6.25 billion year-on-year, boosted by the significant growth in the tobacco business.
LT Group said its tobacco business, which accounted for 42 percent of total attributable income, posted a net income of P2.88 billion in the first nine months of the year, up 60 percent from P1.8 billion on year
the company attributed the higher earnings to improved pricing and better sales mix.
Philip Morris Fortune Tobacco Corp. in November last year raised the price of the Marlboro brand, the first time since January 2013, with a recommended retail price per stick of P3.50 from P3.
The group’s banking unit Philippine National Bank, which contributed 38 percent to the total attributable income, booked a net profit of P4.64 billion in the first nine months of 2017, down 22 percent from P5.91 billion a year ago,
The lower income is mainly attributed to lower gains from the sale of real and other properties acquired, which amounted to P518 million, lower than P2.30 billion booked in 2016.
Liquor units Asia Brewery Inc. contributed P455 million or seven percent, while Tanduay Distillers Inc. added P438 million or six percent.
Net income of ABI dropped 49 percent to P455 million from P895 million due to higher spending on new products.
Revenues, however, were higher by 12 percent to P10.11 billion from the increased contribution of bottled water and soy milk. Cobra Energy Drink and Vitamilk soy milk continue to be market leaders, while Absolute and Summit bottled water have the second largest market share.
Tanduay’s net income stood at P438 million in the first nine months of 2017, also lower by 35 percent from a year ago level, as higher liquor revenues failed to offset the decline in sales from the ethanol business.
Eton Properties registered a slight decline in net income to P246 million in the first three quarters of the year from P249 million on year on lower revenues.