LT Group profit soars in Q3

LT Group Inc LOGO 2 - LT Group profit soars in Q3

LT Group, Inc.’s income soared 52% in the third quarter as its banking, beverage and property development businesses showed strong growth.

The holding company of business tycoon Lucio C. Tan, Sr. reported an attributable net income of P5.48 billion in the July to September period, up from P3.61 billion in the same period last year. Consolidated revenues during the quarter grew 24% to P23.5 billion.

The banking segment added the biggest chunk of revenues at P14.7 billion, 45% higher year-on-year.

Revenues from the distilled spirits business, which include Tanduay Distillers, Inc., Absolut Distillers and Asian Alcohol Corp., fell 10% to P4.31 billion.

However, revenues from the beverage business under Asia Brewery, Inc. rose 6% to P3.55 billion, while the property development business which include Eton Properties Philippines, Inc. saw a 60% jump in revenues to P943.93 million.

Year to date, LT Group’s attributable net income climbed 17% to P14.72 billion, as total revenues jumped 27% to P68.86 billion.

The company said in a regulatory filing the better performance in the nine-month period is due to the “improvement in the operating results of the tobacco and property development segments, which more than offset the lower net income of the banking, distilled spirits and beverage segments.”

The tobacco business of the company, which comprises 65% of total revenues, posted a net income of P9.6 billion in the nine-month period or about 39% higher from last year. The company said the improvement is due to the increase of about 40% to P9.4 billion in equity in net earnings from PMFTC, Inc., where LT Group holds a 49.6% stake.

The banking business saw a net income of P6.5 billion in the three quarters, 14.5% lower from last year, largely due to the 133.1% rise in interest expenses to P13.7 billion. PNB contributed P3.64 billion or 25% of the LT Group’s attributable net income.

The property development segment more than doubled its earnings in the nine-month period to P629 million from P314 million last year. This was driven by the 53% increase in revenues to P1.2 billion from higher rates for business process outsourcing offices and newly opened spaces in Eton Square Ortigas.

Eton Properties accounted for 4% of LT Group’s attributable net income at P626 million during the nine-month period.

The distilled spirits business generated a net income of P518 million in the three-quarter period, declining 28.3% from last year, as the 2.4% increase in cost of sales to P11.5 billion outpaced the 1.2% growth in net revenues to P13.8 billion. Tanduay contributed P509 million in LT Group’s attributable net income to comprise 3% of the total.

Net income of the beverage segment operated by Asia Brewery dropped 12.7% to P254 million during the nine months to September. Revenues rose 9.4% to P12 billion due to higher demand for energy drinks, bottled water and soy milk. But operating expenses also grew 9.2% to P1.9 billion due to bigger spending for advertising and promotions.

The beverage segment made up 2% of LT Group’s attributable net income during the period. Victorias Milling Co., Inc., where LT Group has a 30.9% stake, added P148 million in attributable net income.

Shares in LT Group ended flat at P12.42 apiece at the stock exchange on Wednesday. — Denise A. Valdez

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