Tobacco, banking units raised LT Group Q1 earnings to P7.24B
LT Group Inc. posted P7.24 billion in earnings in the January to March period, representing its highest first-quarter performance in 12 years as all its businesses booked gains.
The conglomerate on Wednesday said its net income during the quarter had climbed by 13 percent versus a year ago, with its tobacco and banking units doing most of the heavy lifting.
According to LT Group, this was its highest profit recorded in the January to March period since its follow-on public offering in 2013.
Philippine National Bank (PNB) contributed P3.42 billion, or 47 percent, to the group’s total bottom line. Fortune Tobacco Corp. (FTC) added P2.8 billion, or 39 percent.
PNB, the country’s eighth-largest bank, saw its net profit jump by 15 percent to P6.1 billion. This was on the back of its loan book expansion as well as trading and foreign exchange gains.
Core income, which excludes nonrecurring gains from the sale of foreclosed properties, leaped by 10 percent to P14.1 billion.
Lending growth
FTC, on the other hand, grew its earnings by 6 percent to P2.81 billion on growth in PMFTC Inc. While PMFTC’s volume was flat at 5.6 billion sticks, FTC’s bottom line was buoyed by cigarette price increases.
Tanduay doubled its net income to P528 million during the period. This was supported by its revenues growing by a fifth to P7.2 billion.
Improved sales volume and higher selling prices in the liquor segment contributed to growth, offsetting the increase in costs.
Operating expenses rose by 10 percent to P496 million due to advertising, personnel cost, taxes and other fees.
Asia Brewery Inc. saw a 15-percent uptick in profit to P178 million. Its brands include Cobra energy drink and Summit bottled water.
The uptick was due to lower discounts provided to distributors and a decline in fixed manufacturing costs. However, revenues of the beverage segment had a slight 2-percent dip to P4.31 billion as Cobra sales volume declined.
Real estate segment Eton Properties Philippines Inc. grew its earnings during the quarter by 24 percent to P144 million. This, as sales grew, particularly in Quezon City and Laguna province.
As of end-March, Eton’s leasing portfolio was at 269,400 square meters (sq m), with 192,000 sq m allotted for office space.
