LT Group, Inc. Reported P6.42 Billion in Attributable Net Income in Q12024, Up 1%

For the first quarter of 2024, LT Group, Inc.'s (LTG) attributable net income was P6.42 billion, which was 1% more than the P6.38 billion recorded for the first three months of 2023.

P297 billion, or 46% of the amount, was contributed by the Philippine National Bank (PNB). The tobacco industry saw a 41% increase, or P2.65 billion. Tanduay increased by 4%, or P254 million. Victorias Milling Company, Eton, and Asia Brewery each contributed P115 million, P155 million, and P100 million, or 2% of the total. A total of P168 million, or 3%, came from other income.

In March, P3.15 billion in regular and special cash dividends were announced, amounting to P0.15 and P0.15 per share, respectively. This amounts to a payout rate of 12.8% of the total income for the year 2023.

LTG's debt-to-equity ratio stood at 3.29:1 with the bank and 0.11:1 without it as of the end of March 2024. The parent business possessed P1.89 billion in cash.

Philippine National Bank (PNB)

​By using the pooling approach, PNB's net profit for the first three months of 2024 came to P5.31 billion, which was P479 million, or 10% more than the P4.83 billion reported for the same period in 2023.

As of March 2024, loans and receivables totaled P610 billion, up 4% from P587 billion in the previous year. Net Interest Income increased by 12% to P11.69 billion from P10.45 billion as a result of the net interest margin improving to 4.3% from 4.1%.

But net service fees and commission income dropped from P1.55 billion to P1.18 billion, a 24% decrease.

In Q12024, the bank recorded P620 million in provisions for credit losses, which is 62% less than the P1.62 billion recorded in Q12023.

Tobacco

The tobacco business reported a net profit of P2.66 billion for the first quarter of 2024, P396 million or 13% lower than the P3.06 billion reported for 1Q23. Most of the tobacco business’ income is from equity in net earnings from the 49.6% stake in PMFTC.

The industry’s volume (excluding illicit trade) was 11% lower year-on-year (y-o-y) in 1Q24 to 10.2 billion sticks from 11.5 billion sticks in 1Q23, largely due to affordability challenges of consumers, increasing illicit incidence, and the proliferation of vaping products.

The Government continued its efforts against the illicit trade. From ad hoc seizures in the past, these have progressed to simultaneous and coordinated nation-wide multi-agency operations, including the Bureau of Customs, Bureau of Internal Revenue, Department of Trade and Industry, the Philippine National Police, and issuances of warrants of arrest by the courts. We are grateful for these steps that the government is taking.

PMFTC aims to provide more choices for its customers. In 1Q24, PMFTC launched Fortune Double Blast, the brand’s first double capsule product in selected areas. For heated tobacco products (HTP), PMFTC launched iQos ILUMA in October 2023, the next level in innovation that uses the new Smartcore Induction SystemTM. It is bladeless and does not require cleaning after use, creating a more effortless experience compared to the previous iQos devices. PMFTC launched ZYN in November 2023, making it the first launch of ZYN in the Asia Pacific region. ZYN nicotine pouches are a smoke-free and tobacco-free way to enjoy nicotine in menthol and non-menthol variants.

Tanduay Distillers, Inc. (TDI)

TDI’s net income for the first quarter of 2024 was P255 million, slightly lower than the P258 million in Q12023. The volume of liquor was 13% lower y-o-y, while bioethanol’s volume was 1% higher compared to the same period in the previous year.

Due to the decline in liquor volume, partially offset by the effect of the early 2023 price increase, revenues were 5% lower y-o-y at P5.90 billion from P6.24 billion.

As of March 2024, TDI’s nationwide market share for distilled spirits was at 31.6%, compared to 29.1% as of March 2023. In the Visayas and Mindanao regions where most of TDI’s sales are generated, market share was at 70.3% and 79.5%, respectively, compared to 71.6% and 77.0% as of March 2023.

Asia Brewery, Inc. (ABI

ABI’s net profit for Q12024 was P155 million, 107% higher than the P75 million reported for Q12023. Revenues grew 15% to P4.39 billion from P3.81 billion as volumes across product lines were higher y-o-y. Cobra energy drink maintained its leadership with a market share of 57% in Q12024, while bottled water brands Absolute and Summit have the third-largest share at 19%.

Eton Properties Philippines, Inc. (Eton)

Eton’s net income for the first quarter of 2024 amounted to P116 million, 5% lower than Q12023’s P122 million. Leasing revenues were 12% higher due to higher occupancy rates and lease rates.

Eton was able to book P50 million in residential sales as the Company resumed selling the remaining inventory of previously launched projects in Q32023, at 68 Roces in Quezon City and in Eton City, Laguna.

​Eton currently has a leasing portfolio of around 289 thousand square meters, of which close to 192 thousand square meters is for office space.