LT Group Q1 profit rises 3% on banking, tobacco contributions

LT GROUP, INC. reported a 3% increase in first-quarter (Q1) attributable net income, supported mainly by contributions from its banking, tobacco, liquor, and property businesses.

In a disclosure on Tuesday, the listed holding company said attributable net income rose to P7.49 billion in the January-to-March period from P7.24 billion a year earlier.

The company said Philippine National Bank (PNB) contributed P3.58 billion, or 48% of total attributable net income, while Fortune Tobacco Corp. (FTC), representing the tobacco business, contributed P2.85 billion, or 38%.

Tanduay and Eton Properties Philippines, Inc. contributed P572 million and P154 million, respectively, accounting for 8% and 2% of total earnings. Asia Brewery, Inc., Victorias Milling Co., Inc., and other businesses contributed P98 million, P158 million, and P75 million, respectively.

For the banking business, PNB posted a 5% increase in net income to P6.37 billion from P6.09 billion a year earlier.

Gross interest income rose 1% year on year to P17.29 billion, supported by higher loan volumes.

In the tobacco segment, FTC posted a 2% increase in net income to P2.86 billion, driven mainly by higher dividend income from PMFTC, in which it holds a 49.6% stake.

The increase offset the decline in equitized earnings, which fell to P2.60 billion in the first quarter from P2.76 billion a year earlier due to lower cigarette sales volume at PMFTC.

“PMFTC continues to accelerate transformation into a smoke-free company by prioritizing consumer-centric experiences and education,” the company said.

“PMFTC developed a B2B toolbox for its business partners to educate legal-age nicotine users about tobacco harm and increase awareness and familiarity for smoke-free products,” it added.

Tanduay Distillers, Inc. posted a 9% increase in net income to P575 million, while net revenue rose 3% to P7.37 billion, supported by price increases that offset weaker liquor sales volume.

Tanduay said it maintained strong performance in the Visayas and Mindanao regions, where it held market shares of 74.3% and 83.8%, respectively.

Its nationwide market share for distilled spirits rose to 40.6% from 39.1% a year earlier.

Asia Brewery posted a net income of P98 million. Beverage segment revenues declined 2% to P4.24 billion due to lower revenues from Cobra Energy Drink and the packaging business.

In the property segment, Eton Properties reported a net income of P155 million, up from P144 million a year earlier.

Leasing revenues rose 1% to P480 million during the quarter, accounting for 82% of total revenues, compared with P473 million in the same period last year.

Real estate sales increased 6% to P108 million from P102 million, driven by continuing sales of remaining inventory at the 68 Roces project in Quezon City and the Eton City project in Laguna.

Eton’s leasing portfolio totaled 259,800 square meters, of which about 189,100 square meters were office spaces.

On Tuesday, shares in LT Group rose 0.39% or 6 centavos to close at P15.44 apiece. — Alexandria Grace C. Magno