Attributable net income rose 3 percent to P7.49 billion, slowing sharply from last year’s stronger pace as inflation, freight costs and softer volumes weighed on several units.
Banking arm Philippine National Bank remained LT Group’s biggest profit engine, contributing P3.58 billion or nearly half of total earnings, while tobacco unit Fortune Tobacco Corp. added P2.85 billion.
PNB’s net income rose 5 percent to P6.37 billion as higher loan volumes boosted interest income, although trading operations swung to a loss due to weaker market conditions.
Price hikes cushion margins
Fortune Tobacco’s earnings grew 2 percent even as cigarette shipment volumes softened, with PMFTC raising prices in March following another excise tax increase.
Liquor arm Tanduay Distillers, Inc. also raised prices to offset rising freight costs and weaker volumes, helping net income rise 9 percent to P575 million.
Tanduay expanded its nationwide distilled spirits market share to 40.6 percent while maintaining dominance in the Visayas and Mindanao markets.
Consumer pressure builds
Meanwhile, beverage unit Asia Brewery, Inc. saw earnings plunge 45 percent to P98 million as weaker Cobra sales and higher glass bottle costs squeezed margins.
Property arm Eton Properties Philippines, Inc. posted an 8 percent increase in earnings to P155 million as recurring leasing income continued supporting growth.
LT Group declared P3.25 billion in dividends during the quarter, including a special dividend, as the conglomerate continued depending heavily on banking and tobacco profits to steady overall earnings growth.
—Edited by Miguel R. Camus
