LT Group Books P3.6-b Profit

Source from:  The Standard Business 08/17/2015

LT Group Inc., the listed holding company of airline and tobacco tycoon Lucio Tan, said net income in the first half of 2015 surged 65 percent to P3.57 billion from P2.16 billion year-on-year, boosted by profits by the banking, distilled spirits and property segments.

LT Group said in a disclosure to the stock exchange revenues in the January-to-June period increased slightly 4.5 percent to P26.5 billion from P25.3 billion in 2014, but cost of sales inched up 1.5 percent to P12.2 billion.

The conglomerate's banking segment reported a net income of P4.1 billion or 31.6 percent better than P3.1 billion in the comparative period, with LT Group's share at P2.3 billion.

The distilled spirits segment reported a net income of P179.5 million in the first half of 2015, a turnaround from a net loss of P172.5 million on year.

Net revenues reached P5.7 billion in 2015, up 1.6 percent from P5.6 billion in 2014. An increase in selling prices offset the slight decline in volumes in the first half of 2015.

LT Group's property development segment under Eton Properties Philippines Inc. posted a net income of P113.9 million in the first half of 2015, significantly higher than last year's P38 million.

Gross profit of Eton Properties jumped 139 percent to P346.3 million on year due to higher residential and leasing revenues.

LT Group's beverage segment, however, registered a 17-percent decline in net income during the first six months of the year to P523.8 million from P629.5 million on year on lower sales.

The revenues of the beverage segment decreased 1.2 percent to P7.1 billion, primarily due to the decline in sales of Cobra, beer and alcopop.

The tobacco segment, meanwhile, posted a 40-percent decrease in first-half net income to P424.9 million from P713.3 million of the same period last year due to lower equity in net earnings from Philip Morris Fortune Tobacco Corp.

"PMFTC continues to be affected by higher excise taxes and the illicit trade in the cigarette industry," LT Group said.

LT Group's balance sheet remained strong, with the parent company's cash balance at P3.6 billion as of the end of June 2015.

The conglomerate in June paid a cash dividend of P0.15 per share, or a total of P1.623 billion.　The dividend is equivalent to 37 percent of the previous year's attributable income. Enditem