2020 LT Group income slips by 9%

Lucio Tan’s LT Group Inc. posted a 9.1-percent weaker attributable income of P21.02 billion last year from P23.12 billion in 2019.

In a disclosure on Friday, the listed conglomerate said its tobacco business accounted for 80 percent of the total full year attributable earnings.

LT Group’s banking segment contributed 7 percent, distillery business at 5 percent, property at 4 percent and beverage arm at 3 percent.

Its 30.9-percent stake in Victorias Milling Company Inc. accounted for 1 percent of the unaudited income.

The tobacco business recorded a 9-percent higher profit of P16.9 billion in 2020.

LT Group said this is on the back of higher share of premium Marlboro as customers shifted from mid-priced Fortune and increased prices to pass on higher excise taxes.

The group’s distillery arm, Tanduay Distillers Inc. (TDI), meanwhile, posted a net income of P1.12 billion last year, up 65 percent year-on-year, attributed to increased volume of liquor sales and decreased selling and marketing expenses.

TDI’s nationwide market share for distilled spirits was lower at 22.5 percent in 2020 from 27.8 percent in 2019.

The company’s beverage segment, Asia Brewery Inc. (ABI) saw a 48-percent better profit last year of P591 million.

“The higher income is largely due to the absence of losses incurred for the joint venture with Heineken as it transitions to the engagement of ABI to brew and distribute Heineken and Tiger beers in the Philippines,” LT Group said.

Eton Properties Philippines Inc.’s earnings declined by 11 percent to P802 million last year.

The property firm’s leasing portfolio consisted of around 181,000 square meters (sqm) of office space and over 45,000 sqm of retail space by the end of last year.

Listed Philippine National Bank’s net income under the pooling method slumped by 72 percent to P2.8 billion last year due to the higher provision for credit losses of P16.9 billion amid the pandemic.

Shares of LT Group gained 22 centavos or 1.63 percent on Friday to finish at P13.70 each.