LT Group Inc., the listed conglomerate of taipan Lucio Tan, is transitioning to a new leadership with a record profit of P25.1 billion in 2022 despite seemingly insurmountable challenges brought about by COVID-19.
Michael G. Tan, son of the taipan, is stepping down after successfully steering the company in the past 10 years to greater heights with 2022’s income nearly three times that of 2013 when LTG had its initial public offering that raised P37.7 billion.
Following its record profit in 2022, LTG likewise declared its highest-ever cash dividends of P1.40 per share or a total of P15.2 billion, representing a 74.8 percent payout rate. In all, since the IPO in 2013, LTG has declared dividends of P4.58 per share or a total of P49.6 billion.
“Like most businesses, your company had to grapple with higher energy, raw material and freight costs, higher interest rates, and higher foreign exchange rates, making it a challenge to keep costs down and at the same time, implement price increases to pass on some of the cost increases to our customers. And your company was able to succeed, posting growth in our income for 2022,” Tan said.
“We reported LTG’s highest ever attributable net income of P25.1 billion in 2022,” he added.
Michael, who will be succeeded by Lucio Tan III, the grandson of the taipan — as the conglomerate paves the way for third generation leaders — will remain as board director and as president of Asia Brewery Inc.
In his message, Michael thanked the company’s stakeholders for the continued support and trust despite the challenges.
“Your company’s journey, from the reorganization in 2012 of Tanduay Holdings Inc., to what it is today, has not been easy. As I look back over the past decade of LTG as a publicly-listed company, we have done our best to lead it to where it is, built the way, the tried and tested way.
“The task of the president of this company is not about the glitz and glamour, but meant stewardship over what was entrusted to me, with careful and responsible management, with accountability. I have handled the responsibility with integrity and done what I could to the best of my ability. I have always put the interests of the stakeholders and shareholders, especially the minority shareholders, above everything else.”
“I’d like to thank our stakeholders for the continued support and trust in your Company, our board of directors, our management team and all our employees who have served with dedication and hard work through these years,” he added.
LT Group Inc. said Wednesday net income increased 24 percent year-on-year to hit a record P25.1 billion, bolstered by strong results of its tobacco, banking and distillery businesses.
The tobacco business contributed P15.3 billion, or 61%, to net income, followed by Philippine National Bank at P6.61 billion and Tanduay Distillers Inc. at P1.47 billion.
Group revenue increased 11 percent year-on-year to P100.87 billion while expenses rose by 7 percent to P91.18 billion.
“As in the past years that we were able to overcome the challenges of the pandemic, my commitment remains in delivering consistent results and prioritizing the profitability of every company in our portfolio,” said Lucio Tan III, who has officially taken over from his uncle Michael Tan as president.
“Additionally, we will continue to strive in creating value for our stakeholders. By staying true to our core values and embracing innovation, we are confident that we can build a resilient and thriving business that will endure for the long term,” he added.
