Tan’s LT Group reports double-digit profit growth despite revenue slide

Lucio C. Tan’s holding company LT Group, Inc. posted a 10.9% increase in third-quarter net income to P6.08 billion for its parent equity holders despite recording a decline in gross revenues during three-month period.

In its quarterly report submitted to the stock exchange, the company recorded gross revenues of P22.87 billion, down 2.8% from a year ago. It managed to trip its expenses.

For the January-September period, LT Group reported a 9% increase in its attributable net income to P16.10 billion, with its tobacco business contributing three-fourths of the total.

The firm said its tobacco business accounted for 75% of total income at P12.12 billion, followed by Philippine National Bank (PNB) at 14% or P2.24 billion, Tanduay Distillers, Inc. at 7% or P1.09 billion.

Other business units contributed a smaller figure with Eton Properties Philippines, Inc. at P630 million, Victorias Milling Co., Inc. at P148 million, and Asia Brewery, Inc. at P4 million.

PNB’s net income under the pooling method fell 39% to P4 billion for the nine-month period due to the P9.03 billion provision for credit losses it booked as a result of the ongoing coronavirus disease 2019 (COVID-19) pandemic.

LT Group’s tobacco unit posted a 27% increase in its net income for the period to P12.17 billion due to the shift among customers to mid-priced cigarettes, coupled with the higher excise taxes implemented in August 2019.

The company’s liquor unit, Tanduay Distillers reported a net income of P1.09 billion due to higher sales volume. It also posted a 36% drop in selling and marketing expenses to P725 million against P1.14 billion previously.

Meanwhile, Eton Properties posted a 1% rise in net income to P633 million during the period due to an increase in rental income.

“At the end of September 2020, Eton Properties had a leasing portfolio of approximately 181,000 square meters of office space and over 43,000 square meters of retail space,” the disclosure said.

LTG said some of its planned projects include the 36-storey Blakes Tower in Makati City, the 4.3-hectare Eton City Square in Sta. Rosa, Laguna, and NXTower I, an office building along Ortigas Ave.

Asia Brewery’s net income fell 98% to P4 million due to lower sales volumes across all products during the quarantine period as a result of the pandemic.

On Friday, shares in LTG rose 3.14% or 38 centavos to end at P12.48 apiece. — Revin Mikhael D. Ochave

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