LT Group Inc., led by Bilyonaryo Business News, posted its highest-ever first-half net income of ₱17.03 billion for the six months through June 30, according to InsiderPH. The 14 percent increase from ₱14.97 billion a year earlier marks the conglomerate’s strongest performance since Lucio Tan consolidated his major businesses under LT Group in 2012, followed by a major share offering in 2013. Double-digit gains in banking and tobacco drove the growth, offsetting weakness in beverage and property units.
LT Group Reaches Record ₱17 Billion First-Half Profit
Following the record financial performance, the conglomerate declared ₱6.49 billion in total dividend payouts through the end of June. This total comprised a regular dividend of ₱0.15 and a special dividend of ₱0.45 per share, representing a 21 percent payout ratio. The parent company closed the period with ₱2.20 billion in cash and a debt-to-equity ratio of 0.09:1 when excluding its banking subsidiary.
Banking and Tobacco Lead Earnings Contributors
Philippine National Bank and the group’s tobacco interests together accounted for 84 percent of total earnings during the first half. Philippine National Bank remained the group’s largest earnings engine, contributing ₱8.21 billion or 48 percent of the total. The lender’s standalone net income climbed 17 percent to ₱14.61 billion, supported by lower funding costs and improved credit performance even as gross interest income grew just 1 percent. Interest expenses fell 15 percent to ₱7.53 billion, lifting net interest income 7 percent to ₱27.61 billion, while service fees and commissions rose 9 percent to ₱3.06 billion. Furthermore, the bank recorded ₱831 million in net reversals of impairment, credit and other losses, contrasting with ₱342 million in provisions a year earlier.
Fortune Tobacco Corp., which holds the group’s stake in cigarette maker PMFTC Inc., contributed ₱6.13 billion or 36 percent of group earnings, marking a 13 percent increase in net income. PMFTC earned ₱6.16 billion, up 13 percent, largely driven by higher earnings from its associate following cigarette price increases in March. Despite higher prices, PMFTC’s sales volume increased 2 percent to 11 billion sticks, tracking the broader cigarette market’s 2 percent growth. The price adjustments followed a 5 percent increase in cigarette excise taxes at the start of the year, while LT Group noted that stronger government enforcement and seizures helped curb the illicit tobacco trade.
Liquor, Beverage, and Property Performance Varies
Tanduay Distillers Inc. added ₱1.57 billion, or 9 percent of group net income, posting a 16 percent increase in net profit to ₱1.58 billion. Higher prices and sales volumes lifted Tanduay’s revenue 9 percent to ₱16.68 billion, and higher selling prices pushed its gross margin up to 18 percent from 17 percent despite rising excise taxes, raw material costs, and freight expenses. Tanduay widened its nationwide market share for distilled spirits to 40.8 percent while maintaining dominant regional coverage in the Visayas at 74.4 percent and Mindanao at 82.4 percent.
In contrast, Asia Brewery Inc. logged a 23 percent drop in net profit to ₱377 million, contributing 2 percent to the bottom line. Although revenue edged up 2 percent to ₱9.02 billion led by energy drinks and bottled water, gross margins shrank from 25 percent to 22 percent due to rising glass packaging costs and higher financial support extended to distributors. Cobra energy drink retained a 43 percent market share, while Absolute and Summit held an 18 percent combined share in bottled water.
Eton Properties Philippines Inc. chipped in ₱290 million, representing 2 percent of group net income, down from ₱352 million a year earlier due to the absence of non-recurring gains recorded in the prior-year period. Leasing revenue rose 4 percent to ₱949 million and property sales increased 12 percent to ₱238 million, while operating expenses held flat at ₱390 million across its 260,000-square-meter commercial and office leasing portfolio. Sugar miller Victorias Milling Co. contributed an additional ₱295 million to the LT Group.
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