LT Group Inc. said profit for the first half of the year reached P10.03 billion, up 9 percent from the prior year’s P9.24 billion.
The tobacco business accounted for P8.18 billion or 82 percent of total attributable income. Philippine National Bank (PNB) contributed P795 million or 8 percent while Tanduay Distillers Inc. (TDI) followed with P541 million or 5 percent.
Eton Properties Philippines Inc. added P402 million or 4 percent while Asia Brewery Inc. (ABI) accounted for P40 million or less than 1 percent. The 30.9 percent stake in Victorias Milling Company Inc. accounted for P148 million or 1 percent.
The tobacco business netted P8.22 billion, up 40 percent from P5.87 billion in 2019, attributed to the higher share of premium Marlboro as well as the price increases implemented in late August 2019. The industry’s volume is estimated to have declined by 17 percent for the period due to impact of the enhanced community quarantine implemented in Luzon starting March 17 and in other select cities thereafter.
PNB posted profit of P1.44 billion, down 64 percent, primarily due to a P8.44 billion provision for credit losses to cover the impact of the COVID-19 pandemic.
TDI registered profit at P543 million, up 43 percent from P380 million, due to improved margin in the liquor segment and a 41 percent decrease in selling and marketing expenses from P786 million to P467 million.
Eton recorded profit of P404 million, up 9 percent from P371 million last year, attributed to the increase in rental income. At the end of June 2020,
ABI reported profit of P40 million, down 84 percent, primarily due to lower volumes across ABI’s products as the ECQ affected sales in sari-sari and convenience stores as well as in supermarkets. Revenues were 17 percent lower.