LT Group Inc., the investment holding company tycoon Lucio Tan, reported Tuesday a 2 percent decline in first-half net income to P12.80 billion, weighed down by weaker earnings from its tobacco business.
The company’s tobacco venture reported a 16 percent drop in first half net profit to P4.89 billion, hurt by a 22 percent decrease in the equity in net earnings from a 49.6 percent stake in cigarette-maker PMFTC.
Dividend income in excess of the investment’s carrying amount added P238 million. PMFTC’s first-half volume was 14 percent lower at 10.6 billion sticks on weaker industry sales and smuggling.
Philippine National Bank, the lending unit of LTG, accounted for P5.77 billion of group net income in the first half. PNB saw its net profit rise 5 percent to P10.29 billion as net interest margin improved to 4.3 percent from 4.1 percent as net interest income rose 11 percent to P24.03 billion.
Meanwhile, Tanduay Distillers Inc. and Asia Brewery Inc. contributed P712 million and P508 million, respectively, to LT Group earnings, while Eton Properties added P326 million and Victorias Milling Co. contributed P277 million.
In May, LT Group declared a special cash dividend of P0.30 per share, amounting to P3.25 billion, which was paid on June 14. Together with the dividends declared in March, the total dividends year-to-date reached P0.60 per share or P6.49 billion, representing a 25.5 percent payout rate.
LTG posted a debt-to-equity ratio of 3.39:1 when including the Bank, and 0.11:1 excluding the Bank. The parent company held cash reserves of P1.99 billion.
