Diversified conglomerate LT Group Inc. reported a sharp drop in net income for the first nine months following a “difficult operating environment for its various businesses.”
From January to September, the LT Group’s net income dropped 65 percent to P2.5 billion from last year’s P7.6 billion.
Philippine National Bank (PNB) accounted for 52 percent of revenues in the nine-month period, followed by Asia Brewery Inc. (ABI) with 32 percent, and Eton Properties Philippines Inc., 3 percent. Fortune Tobacco Corp. and Tanduay Distillers Inc. accounted for the rest of the revenues.
As of end-September, PNB booked a P3.7 billion net income, 46 percent lower than last year’s P6.8 billion on the absence of industry-wide trading gains.
PNB recorded P7.6 billion in trading gains from January to September last year, much higher than the P1.2 billion realized this year. Its net interest income grew 21 percent to P12.3 billion from a year ago on the back of lower costs.
ABI’s net income in the nine-month period rose 27 percent to P797 million from P626 million last year. Its Cobra brand for the carbonated energy drink segment, and Absolute and Summit for bottled water, “continue to be market leaders.”
Property unit Eton’s January to September net income reached P65 million on higher leasing revenues from bullish projects: Centris Cyberpod Three, and the Eton Centris in Quezon City.
For its liquor business, TDI reported a net loss of P83 million in nine months ending September on “higher raw material costs, coupled with higher selling and marketing expenses.”
Tobacco unit Fortune saw a net income decline in the first nine months to P462 million from P2.8 billion a year ago.
Incorporated in 1937, the Lucio Tan-led conglomerate has diversified business interests in distilled spirits (Tanduay Distillers Inc.), beverage (Asia Brewery Inc.), tobacco (Fortune Tobacco Corp), banking (Philippine National Bank), and property development (Eton Properties Philippines Inc.). As of December 2014, the group is 74.36-percent owned by Tangent Holdings Corp.