LT Group Q1 earnings grow 53% to P5.8-B

MANILA, Philippines – LT Group Inc., the listed holding company of tycoon Lucio Tan, reported its first-quarter earnings rose 53% on the back of the strong performance of its banking and property units.

In a disclosure to the Philippine Stock Exchange on Tuesday, May 21, LT Group said its net income in January to March reached P5.8 billion, against P3.8 billion in the same months of 2012.

“The improvement in bottom line primarily came from the banking and property sectors which reported a P2 billion increase in net income. This offset the lower net income contribution from the distilled spirits sector,” the company said.

LT Group is the primary vehicle for the holding and management of the diversified consumer-focused business interests of the Tan family. It is engaged in tobacco, beverage, distilled spirit manufacturing; banking; and property development.

First-quarter net income of banking arm Philippine National Bank surged 105% to P3.7 billion on higher trading gains and lower expenses.

Property development unit Eton Properties Philippines Inc. soared 571% to P127.5 million, thanks to higher residential sales and leasing revenues.

The bottom lines of LT Group’s alcohol and tobacco manufacturing units however were affected by the implementation of the sin tax reform law, which raised selling prices.

Beverage maker Asia Brewery Inc. posted a 4.9% drop in net income to P229 million, as revenues dipped 4%.

Tanduay Distillers saw its net income fall 96% to P6.9 million due to lack of one-off items. Minus these items, recurring net income amounted to P190 million, almost unchanged from the previous year.

The tobacco segment’s net income, on the other hand, rose only 3.3% to P1.6 billion. – Rappler.com