PNB, Eton drive LT Group Q1 profit

0

The banking and property arm of LT Group Inc. drove the Lucio Tan-led conglomerate’s first-quarter profit to P5.8 billion. This despite the significant losses that its flagship brewery businesses posted.

In a filing with the Philippine Stock Exchange, LT Group Inc. reported that it registered a 53-percent increase in its net income to P5.8 billion for the first quarter of 2013.

LT Group recently completed a $914-million top-up share offering mostly from foreign investors.

The increase in its net income, according to LT Group, was on the back of the strong performance of its banking and property segments.


Net income attributable equity holders also increased 36 percent to P3.8 billion.

The group’s consolidated revenues as of March 31 also grew by P2.2 billion to P17.7 billion on higher revenues from banking, distilled spirits and property development, which offset the revenue drop in its beverage and tobacco sectors.

The Philippine National Bank’s (PNB) first-quarter net income zoomed by 105 percent to P3.7 billion from P1.8 billion, following a 22-percent increase in revenues to P10.3 billion and lower operating expenses.

PNB’s merger with Allied Bank became effective in February 2013, and this is the first time that the two banks are reporting as a single corporate entity.

For the first quarter, PNB’s net income attributable to LTG amounted to P1.7 billion representing the latter’s 45.5-percent indirect ownership interest in the merged bank.

The group’s real-estate arm, Eton Properties Philippines Inc., also posted significantly higher first-quarter net income of P127.5 million from P19 million in 2012, with first-quarter revenues increasing to P1.16 billion this year from P560.2 million in 2012.

According to the group, the increase in Eton’s revenues is mainly attributable to the higher percentage of completion of its residential and condominium units, as well as higher leasing revenues from commercial projects.

However, the implementation of the new excise tax law in January 2013 necessitated significant increases in the selling prices of alcohol and tobacco products, which adversely affected sales volumes from these sectors.

Beverage maker Asia Brewery Inc. posted a 4.9-percent lower net income of P229 million, as revenues dipped by 4 percent mainly as a result of higher excise taxes on products like beer and alcopops.

Tanduay Distillers, the group’s distilled spirits producer, also saw its first-quarter net income declining to P6.9 million from P184.6 million of the previous year from one-off items.

Sales volume of Tanduay’s spirits remained relatively flat during the quarter.

The tobacco segment’s net income, on the other hand, increased by 3.3 percent to P1.6 billion from P1.5 billion for the current period, mainly on account of slight net earnings of its operating associate.

Share.
.
Loading...

Please follow our commenting guidelines.

Comments are closed.