LT Group Inc., the listed holding company of tycoon Lucio Tan, is cautiously optimistic on continued macroeconomic headwinds caused by high interest and inflation environment.
LT Group president Lucio Tan III said in a message during the company’s annual stockholders meeting he expected the group’s core businesses to navigate through the economic challenges on the back of strong business model and balance sheet.
“While we are cautiously optimistic about the macroeconomic trends as interest rates are likely to stay higher for a longer while with the inflationary environment stay longer than expected, we believe that your portfolio companies’ solid business models, brand franchises and strong balance sheet will allow you company to withstand the macroeconomic headwinds during the year,” Tan III said.
LT Group has businesses in tobacco, real estate, banking and beverages.
LT Group posted net income of P25.42 billion in 2023, a slight improvement from 25.14 billion in 2022, led by its banking, beverage and property units.
Revenues rose 14.3 percent in 2023 to P115.3 billion from P100.87 billion in 2022.
The year 2023 was a transition for the group as Tan III, the grandson of Lucio Tan, took over the helm of the group from Michael Tan.
Tan Sr., who remains as chairman of the LT Group, said during the stockholders meeting the transaction was “as smooth as possible” after the management and employees of all subsidiaries under the conglomerate threw their support.
Among the LT Group’s units, its tobacco business contributed 45 percent of overall net income, followed by Philippine National Bank (PNB) with 42 percent, Tanduay Distillers Inc. with 6 percent and Asia Brewery Inc. and Eton Properties Philippines Inc. with 2 percent each.
