LTG profit jumped 28% to P4.56B in H1

The Lucio Tan Group Inc. (LTG) reported a net income of P4.56 billion for the first half, a 28-percent growth from P3.57 billion on the back of strong earnings from its banking and tobacco units.

The Philippine National Bank (PNB) contributed P1.73 billion or 38 percent of LTG’s attributable net income.

PNB reported a net income of P4.42 billion for the first semester under the pooling method, 8 percent higher than the P4.10 billion profit a year ago.

Net interest income grew 13 percent to P9.53 billion while net service fees and commission income fell 13 percent year-on-year to P1.44 billion.

Other income grew by 70 percent to P5.46 billion with higher Trading and Foreign Exchange Gains, and one-off gains from the sale of Real and Other Properties Acquired (ROPA), and the 51 percent stake of LTG’s life insurance business to Allianz.

The tobacco business earned P1.45 billion for a share of 32 percent to the group’s attributable net income.

Net income from tobacco stood at P1.46 billion for the first half from P425 million a year ago.
The net earnings from its 49.6-percent stake in Philip Morris Fortune Tobacco Corp Inc. (PMFTC) jumped to P1.4 billion in the first semester compared from P420 million a year ago.

The sales of premium Marlboro accounted for a higher share of total volume but LTG said illicit trade continues to affect the profitability of the tobacco business.

Asia Brewery Inc. (ABI) posted a P720 million profit representing 16 percent share to the attributable net income of the group.

ABI’s income reached P721 million or 38 percent higher from P524 million earned in 2015.

ABI’s Cobra energy drink, Absolute and Summit bottled water, Tanduay Ice, Alcopop and Vitamilk soymilk continue to be market leaders.

The hot summer and election-related consumer spending brought volume sales to ABI’s products.
In late May, ABI signed a joint venture agreement with Heineken for the beer business.

Tanduay Distillers Inc. (TDI) attributable net income improved by 10 percent to P444 million.
Its net profit ballooned with 148-percent growth rate to P444 million mainly due to the bioethanol sales.

The volume for liquor was relatively flat. Based on Nielsen survey, TDI’s market share has remained steady at 24 percent in the past two quarters. TDI’s market shares in the Visayas and Mindanao areas stood at 61 percent and 60 percent respectively as of June 2016.

Eton Properties Philippines, Inc. (Eton) contributed P132 million or a three percent share to the group’s income.

Eton reported net income of P133 million in the first half this year from P113 million in the year-ago semester. Revenues increased by five percent to P1.31 billion with leasing rates higher for BPO office buildings.

In end-May, Eton broke ground on Eton West End Square, a mixed-use development along Pasong Tamo, Makati. It will have about 15,000 square meters of Gross Leasable Areas (GLA) for retail and office use, as well as a 44-storey residential component.

In August, Eton broke ground on the fifth BPO office tower at Eton Centris in Quezon City. It will have a gross GLA of around 37,000 square meters.

LTG disclosed that equity in net earnings from Victorias Milling Company, Inc. (VMC) amounted to P96 million.

In May, LTG paid a cash dividend of P0.15 per share, or a total of P1.62 billion translating to a 25 percent pay-out rate. RIZA LOZADA