The results were powered by gains across its banking, tobacco, liquor, property, and beverage businesses.
Banking unit Philippine National Bank (PNB) drove nearly half of group earnings with P7.03 billion, followed by the tobacco business at P5.44 billion.
Dividends, balance sheet
Liquor maker Tanduay Distillers posted P1.35 billion, Asia Brewery earned P489 million, while Eton Properties and Victorias Milling contributed P351 million and P276 million, respectively.
The group declared a total of P6.49 billion in cash dividends during the period, including an extra special payout in June, representing a 22.4-percent payout rate.
LTG ended June with high debt levels mainly because of Philippine National Bank, which is normal for banks since they handle large deposits and loans. Without the bank, the group’s other businesses carry very little debt. It also had P2.07 billion in cash.
Business unit highlights
Philippine National Bank booked its strongest first-half on record at P12.52 billion, up 22 percent year-on-year, as higher loan volumes, yields, and investment income combined with lower funding costs.
Fortune Tobacco Corp. (FTC) benefited from stronger shipments and price increases by Philip Morris Fortune Tobacco Corp. (PMFTC), lifting earnings 12 percent to P5.46 billion and market share to 46.4 percent.
Tanduay Distillers saw profit surge 91 percent to P1.36 billion, supported by higher prices and improved margins. Asia Brewery’s income eased 4 percent to P491 million on weaker sales of energy drinks and soy milk, though costs fell. Eton Properties earned P352 million, helped by lower expenses despite softer leasing revenues.
—Edited by Miguel R. Camus
