LT Group Inc., the holding firm of most businesses of tycoon Lucio Tan, said net income in the nine months through September fell 6 percent to P19.25 billion from last year’s P20.41 billion, caused mainly by weaker tobacco business.
The tobacco business accounted for 47 percent, the Philippine National Bank 40 percent, Tanduay 6 percent, Asia Brewery and Eton Properties accounted for 2 percent each and its stake in Victorias Milling Co. added 1 percent.
The company reported net income from its tobacco business falling 25 percent to P9.06 billion from previous year’s P12.04 billion.
“The industry’s volume was 20 percent lower year-on-year at 32.2 billion sticks, largely due to the industry-wide price increase in the first quarter, increasing illicit incidence and trade inventory movements,” it said.
The government continued efforts against the illicit trade with 505 enforcements over nine months from 235 last year.
Philippine National Bank reported profits under the pooling method of P13.52 billion, 18 percent higher than last year’s P11.49 billion.
Profit for the period included a P3.72 billion gain from the sale of repossessed assets, versus only P5.47 billion last year.
Tanduay Distillers income grew 34 percent to P1.15 billion from last year’s P860 million. Both the volume of liquor and bioethanol were lower by 10 percent and 32 percent, respectively. Liquor revenues were flat due to price increases in October last year and in January. Margins improved as the company was able to pass on increased raw material and energy costs.
As of September, Tanduay’s nationwide market share for distilled spirits was at 33.6 percent, compared to 30.7 percent last year. In the Visayas and Mindanao regions where most of the company’s sales were generated, market share was at 71.8 percent and 83.2 percent, respectively, compared to 69.8 percent and 79.4 percent last year. Asia Brewery Inc.’s income for the period rose 5 percent to P449 million from the previous P428 million.
Revenue stood 3 percent higher at P12.79 billion from P12.43 billion on the back of higher volume for bottled water and price increases in the first quarter across product lines.
Cobra energy drink maintained its leadership with a market share of 61.1 percent while bottled water brands Absolute and Summit have the third-largest share at 18.5 percent.
Eton Properties Philippines Inc.’s net income grew 4 percent to P347 million from the previous year’s P335 million. This was on the back of a 17 percent increase in leasing revenue to P1.53 billion from the previous year’s P1.3 billion, the company said.
Eton currently has a leasing portfolio of around 288,000 square meters, of which close to 192,000 square meters are for office space.Eton has resumed selling the remaining inventory of previously launched projects, in 68 Roces in Quezon City and in Eton City, Laguna.
