LT Group income climbs to P25.42 billion

LUCIO C. Tan’s LT Group, Inc. saw a 1% increase in its 2023 attributable net income to P25.42 billion from P25.14 billion in 2022, led by its banking, beverage, and property units.

The holding firm’s total revenues in 2023 rose by 14.3% to P115.3 billion from P100.87 billion in 2022.

Among the LT Group’s units, its tobacco business contributed 45% of overall net income, followed by Philippine National Bank (PNB) at 42%, Tanduay Distillers, Inc. at 6%, and Asia Brewery, Inc. and Eton Properties Philippines, Inc. at 2% each.

The company’s stake in Victorias Milling Co., Inc. took up 1% of total net income while other income accounted for 2%.

PNB saw a 62% jump in its 2023 net profit to P19.02 billion, which included a P4.54-billion gain from the sale of repossessed assets. The bank’s loans and receivables rose by 4% to P617 billion while net interest income improved by 19% to P44.59 billion.

Tanduay’s net income improved by 7% to P1.57 billion due to price increases. Its revenues fell by 5% to P29.65 billion as volumes of liquor and bioethanol dropped by 15% and 30%, respectively.

“As of December 2023, Tanduay’s nationwide market share for distilled spirits was at 31.4%, compared to 27.7% as of December 2022. In the Visayas and Mindanao regions where most of Tanduay sales are generated, market share was at 71.8% and 79.3%, respectively, compared to 67.1% and 75.6% as of December 2022,” LT Group said.

Eton Properties had a 21% growth in its 2023 net income to P453 million led by a 17% jump in leasing revenues. The company’s current leasing portfolio spans about 289,000 square meters, of which close to 192,000 square meters are for office space.

“In the third quarter of 2023, Eton resumed selling the remaining inventory of previously launched projects, in 68 Roces in Quezon City and in Eton City, Laguna,” LT Group said.

Meanwhile, LT Group’s tobacco business recorded a 26% drop in its 2023 net income to P11.38 billion.

“The industry’s volume was 20% lower year on year largely due to the industry-wide price increase in the first quarter of 2023, increasing illicit incidence and trade inventory movements,” the conglomerate said.

Asia Brewery had a 1% decline in its 2023 net income to P578 million. Its revenues rose by 1% P17.38 billion due to higher bottled water volume and price increases.

“Cobra energy drink maintained its leadership with a market share of 60.4% in 2023, while bottled water brands Absolute and Summit have the third-largest share at 19%,” LT Group said.

On Monday, LT Group shares fell by 6.31% or 65 centavos to P9.65 per share. — Revin Mikhael D. Ochave