LUCIO C. TAN-LED conglomerate LT Group, Inc. recorded a 12.5% increase in its third-quarter attributable net income to P7.03 billion from P6.25 billion last year, led by its banking and liquor segments.
Third-quarter revenue improved by 12.2% to P34.03 billion from P30.33 billion last year, LT Group said in a recent regulatory filing on Wednesday.
For the first nine months, LT Group saw a 3% increase in attributable net income to P19.82 billion from P19.25 billion in 2023. Revenue rose by 12.8% to P95.16 billion versus P84.33 billion a year ago.
Among segments, Philippine National Bank (PNB) accounted for P8.44 billion, or 43% of the nine-month income, followed by the tobacco business at P7.91 billion, or 40%.
The liquor business, led by Tanduay Distillers, Inc. (TDI) and Asia Brewery, Inc. (ABI), contributed P1.51 billion and P714 million, respectively, or 8% and 4% each.
Eton Properties Philippines, Inc. shared P497 million, or 2%, Victorias Milling Co. contributed P277 million, or 1%, and other income reached P478 million, or 2%.
For the banking segment, PNB’s net profit under a pooling method rose by 11% to P15.06 billion.
Gross interest income grew by 15% to P50.13 billion, while gross interest expenses climbed by 28% to P13.65 billion. Net interest rose by 10% to P36.48 billion.
The tobacco business, led by PMFTC, Inc., saw a 12% decline in net income to P7.94 billion. PMFTC’s cigarette volume dropped by 12% to 15.8 billion sticks, while overall industry volume fell by 5% to 30.4 billion sticks.
“These declines were primarily attributed to consumer affordability challenges, rising illicit trade, and the increasing popularity of vaping products,” LT Group said.
For the liquor business, TDI recorded a 31% increase in net income to P1.51 billion. Liquor and bioethanol volumes rose by 6% and 1%, respectively..
Revenue climbed by 15% to P24.61 billion, while the cost of sales rose by 12% to P21.05 billion.
The nationwide market share for TDI’s distilled spirits fell to 32% in September from 32.6% in the same month last year. TDI has a 70.7% market share in Visayas and a 79.7% share in Mindanao.
In October, TDI sold its investment in Asian Alcohol Corp. to Prior Holdings Corp. for P1.8 billion, payable with interest over a four-year period with an upfront payment of P480 million.
ABI recorded a 59% jump in net income to P715 million as revenue surged by 8% to P13.79 billion.
The Cobra energy drink brand maintained its market leadership with a 55% share as of end-September, while the Absolute and Summit bottled water brands had the third-largest share at 17%.
For the property segment, Eton grew its net income by 44% to P499 million. Leasing revenue surged by 4% to P1.59 billion on higher lease rates.
The property company’s leasing portfolio comprises 288,000 square meters, with approximately 192,000 square meters dedicated to office space. On Wednesday, LT Group stocks fell by 0.59%, or six centavos, to P10.14 per share. — Revin Mikhael D. Ochave