LT Group Inc., the holding firm of tycoon Lucio Tan, reported attributable income last year growing 24 percent to P25.14 billion from previous year’s P20.25 billion, partly as a result of the elimination of gains from the transfer of assets.
“The lower attributable income in 2021 was due to the elimination at the LTG level of the P33.44 billion gain that PNB (Philippine National Bank) booked from transferring real estate assets into PNB Holdings Corp. in the second quarter of 2021,” the company said.
Its tobacco business accounted for P15.28 billion or 61 percent of total attributable income, while PNB contributed P6.61 billion or 26 percent.
Tanduay Distillers Inc. added P1.47 billion or 6 percent of total, while Asia Brewery Inc. accounted for P580 million or 3 percent as Eton Properties Philippines Inc. contributed P372 million or 1 percent. The company’s 30.9 percent stake in sugar firm Victorias Milling Co. Inc. added P491 million or 2 percent of total, while LTG parent also booked net other income of P340 million.
Publicly-listed PNB’s net income under the pooling method was P11.77 billion in 2022, 65 percent lower than 2021’s P34.02 billion which included a P33.44 billion gain from transferring real estate assets into PNB Holdings.
The tobacco business, operated by PMFTC Inc., reported net income of P15.34 billion, 12 percent lower than the P17.5 billion in 2021 having produced only 32.2 billion sticks or 6 percent lower than 2021’s 34.4 billion sticks. The decline was traced to trade inventory adjustments and downtrading post the industry-wide price increase in the first quarter.
The industry’s volume was estimated at 51.8 billion sticks in 2022, 6 percent or 3.4 billion sticks lower than 2021. The decline traced to the industry-wide price increases implemented in late first quarter of 2022 to pass on the increase in excise taxes.
Under Republic Act 11346, a P5 per pack increase in excise taxes to P55 is reflected starting January 1, 2022. While excise taxes also increased by P5 per pack in 2021 to P50, there was no price increase in 2021.
Liquor maker Tanduay net profit for 2022, meanwhile, totaled P1.47 billion or 18 percent higher than previous year’s P1.24 billion. Liquor volume increased 16 percent to 27.49 million cases from 23.69 million cases.
In 2022 Tanduay grabbed 27.7 percent share of the market for distilled spirits compared to only 26.6 percent in 2021. In the Visayas and Mindanao regions where most of Tanduay’s sales are generated, market share was 67.1 percent and 75.6 percent, respectively, higher compared to the previous year’s 66.9 percent and 74.3 percent.
Asia Brewery’s net income grew 23 percent to P583 million from the previous year’s P475 million as sale of ABI’s products improved, except for packaging.
Cobra energy drink remains the market leader with 59 percent of market in 2022 while Vitamilk also kept its market lead with a share of 7 percent. Bottled water brands Absolute and Summit, had the third largest market share of 20 percent.
Eton, the property developer, reported net income of P373 million, 32 percent lower than the P550 million reported for 2021. Eton has a leasing portfolio of 283,000 square meters.
In November, the company declared a P0.50 per share special dividend, or P5.41 billion, paid on December 16. Together with the regular and special dividends declared in March of P0.15 per share, the special dividend of P0.30 in May and the P0.30 in August, brought last year’s total dividends to P1.40 per share or P15.15 billion, equivalent to 74.8 percent of the company’s 2021 attributable net income. This was the highest dividend payment declared in a year since the business listed in 2013.
