LT Group Inc., the holding company of tycoon Lucio Tan, reported a flat net income of P19.82 billion for the first nine months of 2024, a slight increase from P19.25 billion in the same period last year, as weak tobacco performance offset gains from other business segments.
Despite the income stagnation, revenue grew by nearly 13 percent to P95.16 billion, up from P84.33 billion in 2023, fueled by solid performance in banking, distilled spirits, beverages, and property development.
For the third quarter alone, LT Group’s income rose 12 percent to P7.02 billion from P6.24 billion last year. Revenue also increased at the same pace, reaching P34.03 billion compared to P30.33 billion in Q3 2023.
The banking segment was a key driver of growth, with net income rising 11 percent to P5.06 billion. This was primarily attributed to higher net interest income, while LT Group’s share in Philippine National Bank’s (PNB) net income reached P8.44 billion, up 10 percent from the previous year’s P7.64 billion.
On the downside, the tobacco segment saw a 12 percent drop in net income to P7.94 billion, down from P9.06 billion in 2023. This decline was attributed to lower earnings from PMFTC Inc., a joint venture between Tan’s Fortune Tobacco and Philip Morris Philippines Manufacturing. PMFTC’s performance was affected by lower sales volume and the growing impact of illicit tobacco trade, which continues to challenge the legitimate market.
In contrast, the distilled spirits segment, led by Tanduay Distillers, posted a 31 percent rise in net income to P1.51 billion, driven by strong demand for its products and a 14 percent increase in revenue to P24.61 billion. Similarly, the beverage segment saw net income climb 59 percent to P715 million, with revenues from Asia Brewery up 7 percent to P13.79 billion, fueled by robust sales across its product lines.
The property development arm also performed well, with net income rising 43 percent to P499 million. Leasing revenue, which accounted for 84 percent of the segment’s total income, increased by 4 percent to P1.59 billion. Real estate sales, however, remained modest at P312 million, as Eton Properties continued to sell off inventory from previous projects in Quezon City and Laguna.
Overall, while LT Group’s core tobacco business faced headwinds, its diversified portfolio showed resilience, with banking and spirits contributing significantly to its revenue growth.
