Recent Posts

Breaking News

LT Group manages to post 9% profit growth to P9.24 B

LT Group, Inc., the flagship of taipan Lucio Tan, reported a 9 percent growth in attributable net income to P10.03 billion in the first half of 2020 from the P9.24 billion reported for the same period last year.

In a disclosure to the Philippine Stock Exchange, the firm said its tobacco business accounted for P8.18 billion or 82 percent of total attributable income.

Philippine National Bank (PNB) contributed P795 million or 8 percent; Tanduay Distillers, Inc. (TDI) followed with P541 million or 5 percent; Eton Properties Philippines, Inc. (Eton) added P402 million or 4 percent; while Asia Brewery, Inc. (ABI) accounted for P40 million or less than 1 percent.

Its 30.9 percent stake in Victorias Milling Company, Inc. (VMC) accounted for P148 million or 1 percent.

The tobacco business had a net income of P8.22 billion for the first six months of 2020, 40 percent more than the P5.87 billion reported in the same period last year.

Equity in net earnings from LTG’s 49.6 percent stake in PMFTC was P8.25 billion, 46 percent more than the P5.65 billion in the comparative period of 2019.

The higher income is attributed to the higher share of premium Marlboro as well as the price increases implemented in late August 2019. The industry’s volume is estimated to have declined by 17 percent in the first half of 2020 due to impact of the enhanced community quarantine (ECQ) implemented in Luzon starting March 17 and in other select cities thereafter.

PNB’s net income under the pooling method was P1.44 billion for the first half of 2020, 64 percent lower than the same period in 2019 due to the P8.44 billion provision for credit losses that the bank booked.

TDI’s net income for the first half of 2020 was P543 million, 43 percent higher than the P380 million in the same period last year due to improved margin in the liquor segment and a 41 percent decrease in selling and marketing expenses from P786 million to P467 million.

Revenues from liquor were 10 percent higher with the average P160 per case price increase implemented in January to pass on the higher excise taxes, which partially offset the drop in volume.

Revenues from bioethanol were also lower.

Eton’s net income for the first half of 2020 was at P404 million, 9 percent higher than the P371 million reported for the same period in 2019. The higher net income is attributed to the increase in rental income.

ABI’s net income for was P40 million, 84 percent lower y-o-y. This was primarily due to lower volumes across ABI’s products as the ECQ affected sales in sari-sari and convenience stores as well as in supermarkets. Revenues were 17 percent lower.


Source: Manila Bulletin (https://mb.com.ph/2020/08/11/lt-group-manages-to-post-9-profit-growth-to-p9-24-b/?utm_source=rss&utm_medium=rss&utm_campaign=lt-group-manages-to-post-9-profit-growth-to-p9-24-b)

No comments