LT GROUP, Inc. reported a 13% increase in first-quarter (Q1) attributable net income to P7.24 billion from P6.42 billion a year earlier, driven by its banking, tobacco, liquor, and beverage units.
The company’s first-quarter performance represents its highest result since its follow-on public offering in 2013, LT Group said in a stock exchange disclosure on Wednesday.
Among its business units, Philippine National Bank (PNB) was the largest contributor, accounting for 47% of the total, or P3.42 billion. Fortune Tobacco Corp. (FTC) followed with 39%, contributing P2.8 billion.
Tanduay Distillers, Inc. (TDI) and Asia Brewery, Inc. (ABI) posted P525 million and P178 million in net income, respectively, accounting for 7% and 3% of the total.
Eton Properties Philippines, Inc. contributed 2% or P143 million, while Victorias Milling Co., Inc. added 2% or P154 million.
For the banking business, PNB’s net profit under the pooling method increased by 15% to P6.09 billion.
Gross interest income rose by 7% to P17.17 billion, supported by higher yields and increased volumes in trading and investment securities, as well as loans and receivables.
In the tobacco sector, FTC saw a 6% increase in net income to P2.81 billion, driven by higher equity in net earnings from PMFTC, Inc.
Despite a flat industry volume of 11.9 billion sticks, PMFTC’s volume increased to 5.6 billion sticks from 5.5 billion in the same period last year.
Tanduay Distillers, Inc. posted a 107% growth in net income to P528 million, with net revenue rising 22% to P7.19 billion, fueled by higher sales volume and increased selling prices.
TDI continued to perform strongly in the Visayas and Mindanao regions, holding market shares of 67.5% and 81.6%, respectively.
Its nationwide market share for distilled spirits rose to 38.1%, up from 32.9% last year.
Asia Brewery, Inc. saw its net income grow to P178 million, although revenues for the beverage segment declined by 2% to P4.31 billion, attributed to lower sales volume of the Cobra energy drink brand.
In the property segment, Eton Properties posted P144 million in net income, up from P116 million last year.
Leasing revenue was essentially flat at P473 million, while real estate sales reached P102 million as the company continued to sell remaining inventory from previously launched projects in 68 Roces in Quezon City and Eton City, Laguna.
Eton’s leasing portfolio includes 269,400 square meters, with approximately 192,000 square meters allocated to office space.
Shares of LT Group dropped by 3.06% or 38 centavos to P12.02 per share on Wednesday. — Revin Mikhael D. Ochave
