LT Group net income plunges to P4.2 B

MANILA, Philippines - Net earnings of taipan Lucio Tan’s holding firm LT Group Inc. plunged more than half to P4.2 billion last year from P8.7 billion in 2013 due to the continuing difficult operating environment of its tobacco business.

LT Group said its banking unit, Philippine National Bank (PNB), provided bulk of the company’s earnings last year at 52 percent.

PNB’s profits, however, dipped to P5.6 billion from P6.2 billion due to higher trading gains recorded in 2013.

Earnings of Asia Brewery Inc., meanwhile, rose eight percent year-on-year to P1.2 billion as brands such as Cobra, Absolute and Summit Water, and Tanduay Ice remained market leaders in their respective segments.

Real estate arm Eton Properties booked earnings of P120 million last year behind higher leasing revenues.

LT Group said Asia Brewery and Eton Properties contributed 27 percent and three percent, respectively, to total 2014 net income.

Tanduay Distillers Inc. and its tobacco business, meanwhile, each provided two percent to the holding firm’s total earnings.    

Tanduay was able to reverse the P172- million net loss it posted in the first half of 2014 as it ended the year with a net income of P101 million.

Sales volume also managed to increase 17 percent year-on-year due to intensified marketing efforts for its flagship product, Tanduay Five Years.

LT Group’s tobacco business, however, suffered the biggest damage last year as income plummeted to P99 million from P3.9 billion in 2013.

“Philip Morris Fortune Tobacco Corp. continues to be adversely affected by the illicit trade in cigarettes,” LT Group said.