LT Group Inc., the holding company of billionaire Lucio Tan, said Monday net income jumped 49.5 percent in 2018 to P16.19 billion from P10.83 billion in 2017 on the strong performance of banking, liquor and real estate businesses.
LT Group said in a disclosure to the stock exchange banking unit Philippine National Bank contributed P5.47 billion or 33 percent of the total profit, followed by the tobacco business which provided P8.72 billion or 54 percent.
Tanduay Distillers Inc. added P890 million while Eton Properties Philippines Inc. and Asia Brewery, Inc. contributed P479 million and P421 million, respectively.
The conglomerate’s 30.9-percent stake in Victorias Milling Company Inc. added P247 million to the group’s total net income.
LT Group said its balance sheet remained strong with the cash balance of the parent company amounting to P1.47 billion as of end-2018.
PNB’s net income reached P9.78 billion in 2018, up 14 percent year-on-year, boosted by the sale of real and other properties at P3.85 billion, compared to the P2.71 billion booked in 2017.
Loans and receivables grew 16 percent to P581 billion and net interest margin improved to 3.2 percent.
The group’s tobacco business under Fortune Tobacco Corp. reported an income of P8.75 billion last year amid the declining volume due to the substantial increase in excise taxes.
“From a low of P2.72 per pack of 20 sticks in 2012 for the lower tier and P12 per pack for the upper tier, the excise tax is currently at P35 per pack, or about 3 times to 13 times in seven years. This resulted in higher selling prices, which has adversely affected volume” LT Group said.
TDI’s net income also jumped 44 percent in 2018 to P909 million boosted by an increase in market share.
Tanduay was ranked as the world’s number one rum in 2018. Its nationwide market share for distilled spirits stood at 27.3 percent as of December 2018, higher than end-2017’s 24.8 percent.
Eton Properties ended the year with a net income of P479 million, or 38 percent higher than P348 million in 2017.
Revenues rose 43 percent in 2018 to P3.2 billion from P2.23 billion in 2017, led by higher leasing and residential revenues.
The property firm completed the construction of Eton Square Ortigas, a stand-alone pocket retail development that added 2,000 square meters of gross leasable area to its commercial leasing portfolio.
