LT Group Q2 profit sinks amid virus fallout

Bilyonaryo Lucio Tan’s holding company, LT Group Inc. saw its second quarter net income decline 20.6% to P3.81 billion on lower earnings from its beverage, property and banking units as well as higher expenses.

In a regulatory filing, LTG said revenue decreased 6.2% to P22.04 billion as some of its businesses were hit by the stay-at-home order issued by the government to contain the spread of the virus.

In the six months to June, however, LTG’s net income grew 8.5% to P10.03 billion on higher contributions from the tobacco, distilled sports and property development segments. Consolidated revenues, likewise rose 4.07% to P47.26 billion.

The tobacco segment’s net income climbed 28% to P8.2 billion on account of higher equity in net earnings from PMFTC Inc., the group’s joint venture with global cigarette giant Phillip Morris. Distilled spirits, meanwhile, booked a 42.9% jump in earrings to P543 million.

Property development, meanwhile, grew its earnings to P404 million from P371million due to increased rental income.

The banking division posted a net income of P1.4 billion, down 65% as it set aside P8.4 billion for loan loss provisions. The beverage segment likewise saw lower earnings of P40 million compared to P244 million a year ago on account of lower sales volume from bottled water, energy drinks and packaging business.

Cobra energy drink and Vitamilksoymilk, meanwhile, continue to be market leaders while bottled water brands Absolute and Summit have the second highest market share.

Equity in net earnings in VMC amounted to P148 million.

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