LTG profit rises 3% to P7.5 billion in Q1

MANILA, Philippines — LT Group Inc. (LTG) of taipan Lucio Tan saw its attributable net income inch up by three percent to P7.49 billion in the first quarter of 2026 from P7.24 billion in the same period last year amid improved performance across most of its business segments.

Philippine National Bank contributed 48 percent, followed by the tobacco business through Fortune Tobacco Corp. at 38 percent.

The banking segment’s net profit grew by five percent  to P6.37 billion, as gross interest income improved due to higher loan volumes.

Fortune Tobacco, for its part, registered a net income of P2.86 billion, up by two percent year-on-year, as a result of higher dividend income received from PMFTC, a 49.6 percent associate.

LTG said while PMFTC’s shipment volume decreased slightly by four percent to 5.4 billion sticks in the first quarter, its underlying sales volumes remained stable when adjusted for inventory movements in both periods.

PMFTC adjusted its cigarette prices in March 2026 due to continued excise tax hikes under Republic Act 11346. The new pricing reflects the annual five percent excise tax increase effective Jan. 1, 2026, which is now at P69.46 per 20-stick pack.

Meanwhile, Tanduay Distillers Inc. delivered a net income of P575 million during the quarter, nine percent higher than last year’s P528 million, driven by higher net revenues at P7.37 billion as a result of price increases that effectively offset lower sales volume in the liquor business.

LTG said Tanduay maintained its dominant market position in the Visayas and Mindanao regions, holding significant shares of 74.3 percent and 83.8 percent, respectively.

Tanduay’s nationwide market share for distilled spirits likewise expanded to 40.6 percent from 39.1 percent in the first quarter of 2025.

For LTG’s real estate business, Eton Properties registered a net income of P155 million, higher than last year’s P144 million on account of higher margins from the leasing business resulting from both higher rental revenues and lower operating costs.

LTG said Eton’s leasing portfolio encompasses a total of 259,800 square meters, of which office space constitutes 73 percent or 189,100 square meters.

Asia Brewery Inc., meanwhile, posted lower net income during the period at P98 million from P178 million in the first quarter of 2025, as revenues of the beverage segment slipped by two percent year-on-year to P4.24 billion.

Still, LTG said Cobra energy drink held the second-largest market share at 42 percent during the quarter, while Absolute and Summit bottled water brands together accounted for 18 percent, positioning them as the third-largest local water brand.

LTG president Lucio Tan III earlier said the conglomerate expects to maintain a healthy profit for 2026 after achieving its fourth consecutive year of record high earnings in 2025.

“Of course, we are trying our best to mitigate a lot of the adverse effects of the macroeconomic situation caused by the oil issues, and we’re confident that we can continue to sustain growth,” Tan said.

“We’re still excited about the growth for LTG as a whole. We are mindful of a lot of the challenges that we have, but we’re confident that we can address all of those,” he said.