Friday , 29 March 2024

LTG profit in first quarter flat at P2.25B from last year

LT Group Inc. (LTG) reported an unaudited attributable net income for the first quarter of 2017 amounted to P2.25 billion, flat com­pared to the P2.23 billion reported in the first quarter.

The tobacco business contributed P1 billion or 45 percent of total attributable in­come, followed by Philippine National Bank (PNB) at P699 million or 31 percent.

Tanduay Distillers, Inc. generated P207 million or nine percent, while Asia Brewery, Inc. (ABI) added P151 million or seven per­cent.

Eton Properties Philippines Inc. (Eton) provided P75 million or three percent.

Equity in net earnings from the 30.17 percent stake in Victorias Milling Company Inc. (VMC) amounted to P116 million or five percent of total.

LTG said its balance sheet remains strong and as of end-March 2017, the parent company’s cash balance was at P3.84 bil­lion. Debt-to-equity ratio was at 3.78:1 with the bank, and at 0.17:1 without the bank.

On March 14, 2017, the LTG board ap­proved a cash dividend of 18 centavos per share, or a total of P1.95 billion, equivalent to a 20.7 percent pay-out rate on 2016’s at­tributable net income which was paid last May 7.

The tobacco business generated an income of P1 billion in the first quarter, P52 million or five percent more than the P949 million generated in the first three months.

Higher earnings were due mainly to higher selling prices. PMFTC raised the price of Marlboro for the first time since January 2013, with the recommended retail price per stick at P3.50 from P3.

PNB reported an income of P1.27 billion for the first quarter of 2017, 51 percent low­er than a year ago which included a P1.48 billion gain from the sale of Real and Other Properties Acquired (ROPA).

Net Interest Income grew by 11 percent to P5.15 billion as loans and receivables were 19 percent higher year-on-year.

Net Service Fees and Commission In­come declined by 16 percent to P709 million largely due to lower deposit-related fees. Other Income dropped by 66 percent to P1.1 billion due to lower sales of ROPA.

TDI’s bottom line in the first quarter in­creased to P207 million, more than double the P82 million reported in the first quarter.

Liquor sales volume increased by 40 percent compared to the first quarter in 2015. Based on Nielsen estimates of customer off-take, TDI’s market share in the Visayas stood at 61 percent as of end-March 2017, com­pared to 59 percent as of end-2016.

In Mindanao, its market share stood at 65 percent vis-à-vis 62 percent as of end- 2016. Most of TDI’s sales are generated in the Visayas and Mindanao areas.

ABI’s net income amounted to P151 mil­lion for the first quarter of 2017, 57 percent lower than the P350 million reported for th first quarter of 2016.

ABI no longer consolidates the beer and alcopop business as these were trans­ferred to the joint venture with Heineken, AB Heineken Philippines Inc. (ABHPI).

Cobra energy drink and Vitamilk soy­milk continue to be market leaders, while Absolute and Summit bottled water have the second largest market share.

Eton reported earnings of P75 million for the first quarter, 21 percent more than the P62 million generated in the first quar­ter of 2016.

Total revenues decreased by 18 per­cent to P535 million, as revenues from the sale of residential units were lower as these were primarily from the completion of previously sold units. Leasing revenues improved due to higher lease rates for the BPO office buildings that continue to enjoy full occupancy.

Construction is in full swing in proj­ects that were started in 2016. These are the fifth BPO office tower at Eton Centris in Quezon City, the expansion of the retail space at Centris Walk, and Eton WestEnd Square, a mixed-use development along Pasong Tamo, Makati.

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