LT Group Inc., the holding firm of tycoon Lucio Tan, said its net earning for the first quarter of the year surged by 40 percent to P2.2 billion, largely supported by tobacco revenues.
In a statement, the holding firm said its net income during the first three months of the year hit P2.2 billion, 40 percent better than the P1.6 billion reported during the same period a year before.
Its tobacco business generated P945 million or 42 percent of total income, followed by Philippine National Bank with P708 million or 32 percent of total. Asia Brewery Inc.
added P350 million, 16 percent of total, followed by Tanduay Distillers Inc. at P82 million, 4 percent of total.
In addition, Eton Properties contributed P62 million or 3 percent of total. Equity in net earnings from its stake in Victoria Milling Company Inc. contributed P96 million or 4 percent of total.
In February, LTG purchased 131.86 million additional shares in VMC, thus increasing its stake to 30.17 percent from 22.59 percent last year.
“LTG’s balance sheet remains strong. As of end-March 2016, the parent company’s cash balance was at P2.6 billion. Debt-to-Equity Ratio was at 3.44:1 with the bank [PNB], and at 0.14:1 without the bank,” the company said.
The tobacco business, under PMFTC Inc., reported a net income of P949 million, substantially higher than the P411 million generated last year.
Equity in net earnings from LTG’s 49.6 percent stake in PMFTC reached P913 million, more than double than last year’s P415 million.
“While the company sees some improvement, illicit trade continues to affect the overall profitability of the cigarette business,” it said.
PNB’s income grew by 85 percent to P2.6 billion as against the P1.4 billion reported for the first quarter of 2015.
Asia Brewery income for the first three months of 2016 amounted to P350 million, 16 percent higher year-on-year from P301 million.
Its Cobra energy drink, Absolute and Summit water, Tanduay Ice alcopop and Vitamilk soymilk remain market leaders, the company said.
Volumes of most products were higher compared with last year’s same quarter, primarily because of the exceptionally hot summer and election-related spending, Asia Brewery said.
Tanduay’s unaudited net income for the period reached P82 million, a 9 percent increase from the P75 million reported in the same period last year.
Revenues were slightly higher as the contribution from bioethanol offset lower revenues from distilled spirits. Based on Nielsen estimates on customer off-take, Tanduay’s market share was relatively steady at 24.2 percent as of end-March 2016, compared to 24.5 percent as of end-March 2015.
Eton Properties Philippines Inc.’s net earnings for the period amounted to P62 million, 22 percent higher than the P51 million last year.
Revenues modestly expanded by 2 percent as higher leasing revenues offset the drop in revenues from real estate sales. Eton will add a fifth BPO office tower at Eton Centris in Quezon City to increase its leasing portfolio.