LUCIO C. Tan LT Group, Inc. (LTG) attributable net profit in the first six months fell 63% to 3.73 billion pesos from 10.03 billion pesos last year.
“This is mainly due to the increase in provisions for credit losses recorded by its banking subsidiary and the elimination of the gain on disposal of real estate assets at the consolidated level,” the company said in a statement on Wednesday.
The company said its net expenses and other income at the parent company level were 185 million pesos.
During the period, he said the National Bank of the Philippines (GNP) had a negative net contribution of 6.46 billion pesos after eliminating the 33.6 billion peso gain at the consolidated LTG level.
Listed GNP net income for the period amounted to 22.2 billion pesos using the pool method, which already includes a 33.6 billion peso gain from the transfer of properties to PNB Holdings Corp. The bank’s net interest income fell 3% to P16. 85 billion.
The company’s tobacco business is said to have contributed 8.97 billion pesos to total attributable revenue. It generated net income of 9.01 billion pesos in the first half, an increase of 10% from 8.21 billion pesos in the same period last year.
The tobacco industry’s volume estimate for the period was 26.8 billion, nine percent lower than last year’s 29.5 billion sticks.
“This is due to the price increases from October to November 2020 to pass on the additional excise taxes,” LTG explained.
The company said it was not against the tax increases, however, it maintains the increases should be “moderate” as it could lead to further reductions in volume.
Meanwhile, Tanduay Distillers, Inc. (TDI) added 602 million pesos to LTG’s total attributable income. The unit posted an 11% growth in net profit for the six-month period to 605 million pesos from 543 million pesos last year due to a 13% increase in sales volume alcohol and 55% of bioethanol sales.
TDI’s domestic market share climbed to 26.9% at the end of June this year, from 24.1% year-on-year. Its market share in the Visayas and Mindanao region also increased, with its market share in the Visayas increasing from 62.4% to 68.2% and that of Mindanao increasing from 72% to 79.5%.
Some P343 million was contributed by Asia Brewery, Inc. (ABI) to LTG’s total attributable income. Its net profit for the first half of the year was 343 million pesos, almost eight times more than 40 million pesos.
“The increase in revenue is largely due to the absence of losses from the AB Heineken joint venture as the partnership moves from 2021 to ABI’s commitment to brew and distribute Heineken® and Tiger® beers in the Philippines. LTG explained.
ABI’s revenue for the period “was relatively stable” as the higher volume of Cobra Energy Drink, which now has a 65% market share, offset the lower volume of bottled water and milk from soy.
The real estate arm of Eton Properties Philippines, Inc. accounted for P287 million of LTG’s total attributable income. Unit income for the six-month period was 288 million pesos, down 29% from last year’s 404 million pesos, residential unit sales and income from rental having fallen.
Eton Properties has a rental portfolio of approximately 181,000 square meters (m²) of office space and over 45,000 m². retail space.
He has several projects underway, including the 36-story office and Blakes Tower residential development in Makati City, with 11,400 m². of offices and 14,000 m². of residential space. He is also working on the Eton City Square 1 shopping and shopping center in Laguna, which will add 7,200 m². of gross rental area to its portfolio of commercial leases in phase 1.
LTG’s 30.9% stake in Victorias Milling Co., Inc. added Pesos 169 million to the company’s total attributable income.
LTG shares on the exchange fell 1.61% or 16 centavos on Wednesday, closing at 9.80 P each. – Keren Concepcion G. Valmonte