Listed conglomerate LT Group Inc. generally grew its first-half profit, albeit slower than its first-quarter performance, on the back of the increase in income from its beverage and property business units.
In a filing with the Philippine Stock Exchange on Thursday, LT Group disclosed that it registered a P9.5-billion consolidated net income for the first semester of 2013, up 34.6 percent from the same period last year.
According to the Lucio Tan-led group, the bottom line improvement was mainly driven by higher bank trading gains and increase in net income from the beverage and property sectors.
Net income attributable to equity holders of the group also amounted to P6.1 billion, or 18 percent higher than year ago levels.
However, the first-half performance was very much behind from its first-quarter net income growth where it expanded its gains by 54 percent year-on-year because of the lower bank trading income and decline in net income contribution from the tobacco and distilled spirits segments during the second quarter of 2013.
Banking net income of the group doubled from P3.2 billion to P6 billion on account of the 119-percent increase in trading gains as the country’s favorable economic environment, LT Group said.
The company, however, said that its beverage revenues were flat for the first half of 2013 as the increase in revenues from bottled water, energy drinks and dairy products was offset by lower revenues from products affected by the excise tax increase.
Despite flat revenues, net income of Asia Brewery Inc. improved by 12 percent to P483 million because of lower operating and interest expenses.
Revenues of the LT Group’s property business, Eton Properties, grew by 161 percent on account of higher completion percentages on its residential and condominium projects as well as higher leasing revenues from commercial projects.
Net income of the real estate firm amounted to P204 million, a complete turnaround from the net loss of P33 million incurred in 2012.
Tanduay Distillers, the group distilled spirits producer, revenues, on the other hand, decreased by 15 percent on account of a 25-percent contraction in sales volume in the second quarter, which negated the 10-percent increase in average selling prices.
Net income contribution from its tobacco business, however, decreased by 15 percent from P3.1 billion in 2012 to P2.6 billion in 2013.