LT Group, Inc. Reported P12.80 Billion in Attributed Net Income for H1-2024, 2% Lower than H1-2023

​LT Group, Inc.’s (LTG) attributable net income for the first half of 2024 was P12.80 billion, 2% lower than the P13.00 billion reported for the first six months of 2023.

Philippine National Bank (PNB) contributed P5.77 billion or 45% of total. The tobacco business added P4.87 billion or 38%. Tanduay and Asia Brewery added P712 million and P508 million, respectively or 6% and 4% each. Eton and Victorias Milling Company accounted for 2% each, at P326 million and P277 million, respectively. Other Income was P336 million of total or 3%.

A special cash dividend of P0.30 per share or a total of P3.25 billion was declared in May and paid on June 14. Together with the dividends declared in March, dividends year-to-date amounted to P0.60 per share or a total of P6.49 billion, representing a 25.5% pay-out rate.

As of the end of June 2024, LTG’s Debt-to-Equity Ratio was at 3.39:1 with the Bank and at 0.11:1 without the Bank. The parent company had cash of P1.99 billion.

Philippine National Bank (PNB)

For the first six months of 2024, PNB’s net profit under the pooling method was P10.29 billion, P528 million or 5% higher than the P9.76 billion reported for the same period in 2023.

Loans and receivables were 7% higher as of June 2024 at P632 billion from P593 billion as of June 2023. Net Interest Margin improved to 4.3% from 4.1% resulting to an 11% improvement in Net Interest Income to Php24.03 billion from P21.62 billion.

Net Service Fee and Commission Income, however, were 27% lower at P2.27 billion from P3.13 billion.

The Bank booked provisions for credit losses of P2.07 billion in 1H24, 32% higher than the P1.57 billion booked in 1H23.

Tobacco

The tobacco business reported a net profit of P4.89 billion for the first half of 2024, P957 million or 16% lower than the P5.85 billion reported for 1H23. Most of the tobacco business’ income is from equity in net earnings from the 49.6% stake in PMFTC. This amounted to P4.43 billion in 1H24, 22% or P1.24 billion lower compared to 1H23’s P5.68 billion. Dividend income in excess of carrying amount of the investment added P238 million as of June 2024.

PMFTC’s 1H24 volume was at 10.6 billion sticks, 14% lower than 1H23’s 12.3 billion sticks. The industry’s volume (excluding illicit trade) was 8% lower year-on-year (y-o-y) in 1H24 to 20.0 billion sticks from 21.7 billion sticks in 1H23, largely due to affordability challenges among consumers, increasing illicit incidence, and the proliferation of vaping products.

The Government has continued its efforts against the illicit trade with 294 recorded enforcements in the first half of 2024. Programs include ad hoc seizures as well as simultaneous and coordinated nation-wide multi-government agency operations.

Tanduay Distillers, Inc. (TDI)

TDI’s net income for the first half of 2024 was P712 million, 14% higher than the P626 million in 1H23.

Both the volume of liquor and bioethanol were higher y-o-y, at 7% and 14%, respectively. Due to TDI’s higher selling prices, revenues were higher by 15% y-o-y to P14.63 billion. This resulted in an improved Gross Profit Margin (GPM) from 13% to 14% in the current period.

As of June 2024, TDI’s nationwide market share for distilled spirits was at 31.5%, compared to 32.1% as of June 2023. In the Visayas and Mindanao regions where most of TDI’s sales are generated, market share was at 70.6% and 79.0%, respectively, compared to 69.8% and 80.1% as of June 2023.

Asia Brewery, Inc. (ABI)

ABI’s net profit for 1H24 was P509 million, 49% higher than the P340 million reported for 1H23.
Revenues were 12% higher to P9.40 billion from P8.41 billion as sales volume across product lines were higher y-o-y. GPM was lower at 22% from 23% due to sales mix.

Cobra energy drink maintained its leadership at 56% market share in 1H24, while bottled water brands Absolute and Summit have the third-largest share at 18%.

Eton Properties Philippines, Inc. (Eton)

Eton’s net income for the first half of 2024 amounted to P327 million, 59% higher than 1H23’s P206 million. The higher income was primarily due to higher Other Income at P342 million from P172 million.

Leasing revenues amounted to P1.01 billion, 5% higher y-o-y due mainly on higher occupancy rates and lease rates.

In 1H24, Eton booked P105 million in residential sales as the Company resumed selling remaining inventory of projects at 68 Roces in Quezon City and in Eton City, Laguna.
Eton currently has a leasing portfolio of 288,000 square meters, of which close to 192,000 square meters is for office space.