Insider Spotlight
The conglomerate's net income rose 14 percent to P17.03 billion from P14.97 billion a year earlier, its best first-half performance since Tan consolidated his major businesses under LT Group in 2012 and followed with a major share offering in 2013.
Philippine National Bank remained the biggest earnings engine, contributing P8.21 billion, or 48 percent of the total, while tobacco accounted for another P6.13 billion, or 36 percent.
Dividends
LT Group declared P6.49 billion in dividends through end-June, equivalent to P0.60 per share and a 21 percent payout rate.
The parent company ended June with P2.20 billion in cash and a debt-to-equity ratio of just 0.09:1 excluding PNB.
Lower funding costs lift PNB
PNB’s net income climbed 17 percent to P14.61 billion even as gross interest income grew just 1 percent, with lower funding costs doing much of the work.
Interest expenses fell 15 percent to P7.53 billion, lifting net interest income 7 percent to P27.61 billion, while service fees and commissions increased 9 percent to P3.06 billion.
Credit performance also improved, with PNB recording P831 million in net reversals of impairment, credit and other losses compared with P342 million in provisions a year earlier.
Those gains helped offset an 85 percent drop in trading, investment securities and foreign exchange gains to P212 million amid weaker market conditions. The bank also booked higher gains from the sale of foreclosed properties.
Tobacco gets lift from higher prices
Fortune Tobacco Corp. earned P6.16 billion, up 13 percent, mainly on higher earnings from its 49.6 percent-owned associate PMFTC following cigarette price increases in March.
PMFTC’s sales volume still increased 2 percent to 11 billion sticks despite the higher prices, broadly tracking the 2 percent growth of the overall cigarette market.
The price increases followed another 5 percent adjustment in cigarette excise taxes at the start of 2026, while LT Group said stronger government enforcement and seizures were helping curb illicit tobacco trade.
Tanduay gains as brewery margins tighten
Tanduay Distillers posted a 16 percent increase in net income to P1.58 billion as higher prices and sales volumes lifted revenue 9 percent to P16.68 billion.
Higher selling prices helped gross margin improve to 18 percent from 17 percent despite rising excise taxes, raw material costs and freight expenses. Tanduay’s nationwide distilled spirits market share also climbed to 40.8 percent from 39.2 percent.
Asia Brewery moved in the opposite direction, with net income falling 23 percent to P378 million even as revenue grew 2 percent to P9.02 billion.
Higher glass bottle production costs and additional distributor support pushed cost of sales up 7 percent, squeezing gross margin to 22 percent from 25 percent.
Property profit slips
Eton Properties posted a 17 percent decline in net income to P291 million as the previous year benefited from one-time gains.
Its underlying businesses still expanded, with leasing revenue rising 4 percent to P949 million and property sales increasing 12 percent to P238 million. Leasing accounted for 80 percent of revenue and its portfolio stood at 260,000 square meters as of June.
Victorias Milling Co. contributed another P295 million to LT Group, while Tanduay, Asia Brewery and Eton contributed P1.57 billion, P377 million and P290 million, respectively.
—Edited by Miguel R. Camus
