Lucio Tan holding firm reports higher first-half profit

MANILA, Philippines — Higher trading gains and beverage and property sales lifted the first-half net income of LT Group Inc. owned by tobacco magnate Lucio Tan, the Philippines’ second richest person.

In a disclosure to the Philippine Stock Exchange on Thursday, August 15, LT Group said its January-June net income grew 34.6% year-on-year to P9.5 billion.

Companies under LT Group include Philippine National Bank (PNB), Eton Properties Philippines Inc., Asia Brewery Inc., Tanduay Distillers Inc. and Fortune Tobacco Inc.

“Banking, beverage and property sector incomes offset the weak performance of tobacco and alcohol products as the effects of the high excise tax increase in 2013 continue to affect sales volume,” the holding firm said.

Here’s how each unit performed:

• PNB earnings almost doubled to P6 billion from P3.2 billion as trading gains rose 199%
• Beverage unit Asia Brewery’s revenues improved by 12% to P482 billion as higher revenues from bottled water, energy drinks and dairy products offset a dip in beer revenues
• Eton Properties’ revenues surged 161%, thanks to higher completion rates of its residential and commercial projects as well as higher leasing revenues from commercial projects
• Tanduay Distillers’ revenues declined 15% as sales volume contracted 25% in April-June following higher excise taxes on alcohol and tobacco products
• The net income of Fortune Tobacco also fell 15% to P2.6 billion from the P3.1 billion

– Rappler.com