LT Group, Inc. (LTG), the conglomerate led by bilyonaryo Lucio Tan, reported a 24 percent increase in its net income to P25.14 billion last year, fueled by the growth of its hard liquor and beverage businesses.
The tobacco business, managed under Philip Morris Fortune Tobacco Corp. (PMFTC) accounted for the majority of LTG’s earnings at P15.28 billion or 61 percent. Meanwhile, Philippine National Bank (PNB) contributed P6.61 billion or 26 percent, Tanduay Distillers, Inc. added P1.47 billion or six percent, and Asia Brewery accounted for P580 million or three percent.
While PNB’s net income declined by 65 percent last year due to the transfer of real estate assets into PNB Holdings Corp., Tanduay Distillers, Inc. experienced an 18 percent growth in net earnings to P1.47 billion as volumes jumped by 16 percent to 27.49 million cases.
The company’s nationwide market share for distilled spirits also increased to 27.7 percent from 26.6 percent as of the end of 2022.
Asia Brewery Inc also reported higher earnings, rising by 23 percent to P583 million on improved volumes.
Cobra energy drink remained the market leader with a 59 percent market share, while Vitamilk maintained its market leadership with a share of seven percent. Bottled water brands, Absolute and Summit, had the third largest market share at 20 percent.
However, PMFTC had a challenging year as its profit fell by 12 percent to P15.34 billion on lower volumes due to trade inventory adjustments and industry-wide price increases in the first quarter of 2022.
The conglomerate’s real estate unit Eton Properties also experienced a decline in net income to P373 million, down 32 percent from the previous year.
Nevertheless, LTG’s 30.9 percent stake in sugar firm Victorias Milling Company, Inc. contributed P491 million or two percent of the group’s earnings.