Higher operating expenses and lower contributions from affiliates and joint ventures weighed down the first-half net income of LT Group Inc., the investment holding company of tycoon Lucio Tan, despite the higher revenue from its banking and beverage businesses.
LT Group said first-half net income declined 16 percent year-on-year to P13 billion even as total revenue for the period rose to P53.99 billion from P45.76 billion in the year-earlier period. Banking contributed P32 billion to group revenue while beverage added P8.1 billion.
Operating income slipped 3 percent to P16.62 billion as operating expenses jumped 34 percent to P18.71 billion as its unit, Philippine National Bank, made a provision of P1.6 billion for possible credit losses. In the year-earlier period, PNB reversed provision of credit losses of P3.1 billion.
Meantime, other income was hurt by the lower amount of gain on asset sale or exchange, which in the first half fell to P2.94 billion from P5.25 billion in the year-earlier period.
LT Group said lower sales volume from its tobacco business crimped net income by 25 percent to P5.85 billion. Sales was hurt by an industry-wide price increase in the first quarter.
Philippine National Bank, meantime, saw first-half net profit drop 12 percent to P9.79 billion as gain from the sale of repossessed assets plunged to P2.93 billion from P5.25 billion.
Tanduay Distillers Inc., the liquor unit of the LT Group, increased net income by 11 percent to P626 million as it continue to gain market share, particularly in the Visayas and Mindanao.
Asia Brewery posted a 16 percent growth in first-half net income to P340 million as revenue rose 3 percent to P8.41 billion on account of gains in energy drink and bottled water.
Meantime, Eton Properties Philippines Inc. saw first-half income fall 20 percent to P206 million.
