The holding firm of billionaire Lucio Tan suffered a steep drop in net income in the first nine months of the year as most of its business units registered lower earnings.
In a statement, LT Group, Inc. (LTG) said its attributable profit amounted to PHP 2.5 billion in the January to September period, 67% lower than last year’s PHP 7.6 billion. Banking arm Philippine National Bank (PNB) contributed PHP 1.3 billion or 52% to total earnings.
The share of beer unit Asia Brewery Inc was at PHP 796 million or 32%, followed by the tobacco business at PHP 462 million or 19%.
Real estate unit Eton Properties Philippines Inc accounted for PHP 65 million or 3%, while liquor arm Tanduay Distillers Inc registered a loss of PHP 83 million.
The lack of hefty trading gains enjoyed in 2013 dragged PNB’s earnings by nearly half to PHP 3.7 billion in the nine-month period from PHP 6.8 billion a year ago.
Asia Brewery’s profit climbed 27% to PHP 797 million from PHP 626 million in 2013 as the beverage company continued to dominate the water and carbonated energy drink market segments.
The impact of illicit cigarette trade hit LT Group’s tobacco business with net income plunging to PHP 462 million from PHP 2.8 billion in the previous year.
Eton’s earnings dropped to PHP 65 million from PHP 196 million a year ago.
However, rental revenues of the property developer were higher with the contribution of Centris Cyberpod Three, the latest business process outsourcing (BPO) office building at Eton Centris in Quezon City.
Higher raw material costs coupled with higher selling and marketing expenses weighed on Tanduay Distillers, which booked a wider net loss of PHP 83 million compared to last year’s PHP 41 million.