EconomyEditor's PickLT Group books P6B profit in 3rd quarter

November 12, 2021

LT Group, Inc. (LTG) saw its third quarter attributable net income improve by 2.3% to P6.22 billion year-on-year, despite a dip in revenues.

In a regulatory filing on Friday, the conglomerate owned by tycoon Lucio Tan reported its gross revenues went down to P22.8 billion from P22.85 billion a year ago.

For the first nine months, LTG’s net attributable income slumped by 38% to P9.95 billion from P16.10 billion a year ago, due to the higher credit losses provisioning of its banking arm and its unrecognized gain from transferring real estate assets.

LTG said its tobacco business accounted for 33% of its total attributable income at P13.27 billion, while Tanduay Distillers, Inc. (TDI) made up 10% with P998 million.

Asia Brewery, Inc. (ABI) and Eton Properties Philippines Inc. contributed 4% of the total, with ABI accounting for P411 million and Eton Properties for P366 million. LTG’s 30.9% stake in Victorias Milling Company, Inc. accounted for 2% with P169 million.

LTG said listed Philippine National Bank (PNB) had P5.21 billion loss contribution after a P33.6-billion gain from the transfer of real estate properties into PNB Holdings, Corp. was not recognized at the consolidated parent level.

However, the transfer of properties was taken into account under the pooling method, leading PNB to report a nine-month income of P24.43 billion. PNB’s net interest income, however, inched down by 1% to P25.76 billion.

Meanwhile, its tobacco business reported a net income of P13.32 billion in the first nine months, up 9% from last year’s P12.17 billion.

TDI’s net income posted an 8% decline to P1 billion from P1.09 billion in the same period last year due to higher production costs and operating expenses, coupled with lower selling prices for bioethanol.

ABI, on the other hand, saw its net income surge to P411 million from last year’s P4 million. LTG said ABI no longer posted losses from the AB Heineken joint venture, as ABI will begin to brew and distribute Heineken and Tiger beers in the country.

Meanwhile, Eton Properties recorded a 42% profit drop to P367 million from P633 million last year as residential unit sales and leasing income declined.

Shares of LTG at the stock exchange went up by 2.11% or 21 centavos to close at P10.18 apiece. — Keren Concepcion G. Valmonte

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