LTG net income zoomed 50% to P6.6B last year

The LT Group Inc. (LTG) of taipan Lucio Tan posted a 50-percent increase in profit in 2015 to P6.6 billion amid impressive results in its banking, beverage and tobacco businesses. 

The Philippine National Bank (PNB) contributed P3.51 billion, or 53 percent of its total income. PNB’s income rose 15 percent to P6.8 billion for 2015 from P5.9 billion a year ago. Asia Brewery Inc.’s (ABI) shared P1.1 billion, or 17 percent of the group’s total income during the year, followed by the tobacco business at P1.04 billion, or 16 percent. Its Cobra energy drink, Absolute and Summit water, Tanduay Ice alcopop and Vitamilk soymilk continue to be market leaders even as intense competition in the beverage market continues to affect volumes and margins.

The tobacco business reported a net income of P1.04 billion for 2015, significantly more than the P148 million reported for 2014.

Equity in net earnings from LTG’s 49.6-percent stake in Philip Morris Fortune Tobacco (MFTC) reached P975 million, 89 percent higher than the P515 million in 2014.

“While there has been some improvement, the illicit trade continues to affect the overall profitability of the cigarette business,” LTG said in a statement.

Tanduay Distillers Inc. (TDI) accounted for P422 million, or 6 percent, while Eton added P312 million or 5 percent to company profit.

TDI’s net income reached P422 million in 2015, significantly higher than the P101 million reported the previous year.

Citing Nielsen, LTG said TDI’s market share improved to 24.1 percent from 22 percent, with the market share coming from the Visayas and Mindanao areas.

Further, LTG said income of property firm LTG amounted to P313 million in 2015 from P120 million the previous year.

Revenues were 9 percent higher with higher lease rates for new or renewed contracts in office buildings.

To increase its leasing portfolio, Eton will add a fifth business process outsourcing (BPO) office tower at Eton Centris in Quezon City.