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Lucio Tan’s companies recover in Q1 2021

Ralf Rivas

File photo

Lucio Tan's tobacco, liquor, and banking businesses see gains in the first quarter despite the pandemic

Tycoon Lucio Tan’s companies under the LT Group (LTG) saw some recovery in profits in the first quarter of 2021.

In a disclosure to the Philippine Stock Exchange on Tuesday, May 11, LTG reported a net income of P6.5 billion in the first quarter, 4.5% more than the P6.2 billion in the same period in 2020.

Its tobacco business accounted for P5 billion or 77% of total attributable net income, while the Philippine National Bank (PNB), Tanduay Distillers, Asia Brewery, and Eton Properties, plus its stake in Victorias Milling Company, comprised the rest.

Net expenses at the parent level amounted to P198 million.

In 2020, LTG saw profits decline by 9%.

Here is a snapshot of how the companies under LTG performed:

Tobacco

LTG’s tobacco business earned P5 billion in the first quarter, P24 million more than it earned a year ago.

The company said industry volume was estimated at 13.1 billion sticks, 14% less than the 15.3 billion a year ago, due to higher sin taxes.

PNB

PNB’s net income stood at P1.8 billion, up by 33% in the first quarter, as the bank lowered its provisions for credit losses.

Net interest income fell 7% to P8.2 billion, while services fees and commission income grew 35% to P1.3 billion.

Tanduay Distillers

Tanduay’s net income for the first three months stood at P235 million, 18% higher than the P199 million a year ago.

This is due to the 5% increase in volume of liquor sales and higher rectified alcohol sales.

Tanduay’s nationwide market share for distilled spirits was at 26.5%, while it continued to dominate the Visayas and Mindanao markets at 70.1% and 76%, respectively.

Asia Brewery

Asia Brewery saw a 185% increase in its earnings to P211 million in the first quarter, largely due to the absence of its joint venture with AB Heineken, which had earlier posted losses.

Revenues declined 13% due to lower volume of bottled water and soy milk.

Eton Properties

Eton’s net income fell 11% to P150 million in the first quarter due to the decline in residential unit sales and lower leasing income.

Eton has a leasing portfolio of 181,000 square meters of office space and over 45,000 square meters of retail space. – Rappler.com

Ralf Rivas

A sociologist by heart, a journalist by profession. Ralf is Rappler's business reporter, covering macroeconomy, government finance, companies, and agriculture.