VAPID performance by banking and beverage units prompted the holding firm of most businesses led by tycoon Lucio Tan to post a flat income in the first half of the year.
The LT Group Inc. said its first half income reached P4.53 billion for the period, slightly lower than last year’s P4.56 billion.
The company’s tobacco business, however, maintained its recovery path. The tobacco business, half of which is comprised by PMFTC Inc., contributed 41 percent, or P1.85 billion, to total attributable income. The Philippine affiliate of Philip Morris International is followed by Philippine National Bank (PNB) at P1.52 billion, or 34 percent of the total. Asia Brewery Inc. (ABI) added P401 million, or 9 percent, while Tanduay Distillers Inc. accounted for P339 million, or 7 percent. Eton Properties Philippines Inc. provided P174 million, or 4 percent, while equity in net earnings from its 30.9-percent stake in Victorias Milling Co. Inc. reached P246 million, or 5 percent of total.
The tobacco business of PMFTC—the combined companies Philip Morris Philippines and Tan’s Fortune Tobacco Corp.—generated an income of P1.86 billion for the first half of the year. That amount represents a 28-percent increase from the P1.46 billion PMFTC posted in the same period last year.
“Higher earnings were mainly due to higher selling prices,” the company said. “PMFTC raised the price of Marlboro for the first time since January 2013, with the recommended retail price per stick at P3.50 from P3.00.”
PNB’s net income fell 38 percent during the period to P2.75 billion, from P4.42 billion last year. Earnings last year, however, included a P1.48-billion gain from the sale of real and other properties acquired.
Rum, beer
TANDUAY’S bottom line, meanwhile, settled at P339 million for the period, which is 24 percent lower than the P444 million Tanduay posted in the same period last year. Liquor sales volume increased by 22 percent, the company said.
“Our market share in the Visayas stood at 60 percent as of end-June, and in Mindanao at 64 percent,” LT Group said, citing estimates by The Nielsen Co.
The company’s sales are mostly in the Visayas and Mindanao.
The volume of ethanol, however, was 30 percent lower, while margins contracted due to lower selling prices and higher costs to produce alcohol. On the other hand, ABI’s net income fell 44 percent to P401 million, from P721 million last year, as the company had to spend more on advertising and selling expenses due to the competitive environment in the carbonated beverage segment.
“ABI also had to book additional depreciation expenses from the new soy-milk plant,” it said.
Its energy-drink and soy-milk products continue to be market leaders, while bottled-water brands have the second-largest market share.
Eton Properties reported a net income of P174 million, some 31 percent higher than the P133 million last year, due to higher lease rates at its office buildings that continue to enjoy full occupancy. Construction is ongoing for projects launched in 2016 that will increase Eton’s leasing portfolio. These are the fifth BPO office building at Eton Centris in Quezon City, the expansion of Centris Walk mall, and the office and retail portions of use WestEnd Square along Pasong Tamo, Makati City.