LT Group, Inc. (LTG) reported today (March 18, 2019) that its attributable net income for 2018 amounted to Php16.19 billion, compared to the Php10.83 billion reported for 2017.

Philippine National Bank contributed Php5.47 billion or 33% of total. The tobacco business accounted for Php8.72 billion or 54% of total. Tanduay Distillers, Inc. (TDI) added Php890 million or 5%. Eton Properties Philippines, Inc. (Eton) contributed Php479 million while Asia Brewery, Inc. (ABI) provided Php421 million, each accounting for 3% of total. The 30.9% stake in Victorias Milling Company, Inc. (VMC) added Php247 million, or 2% of total.

LTG’s balance sheet remains strong. As of the end of December 2018, the cash balance of the parent company stood at Php1.47 billion. Debt-to-Equity Ratio was at 3.61:1 with the Bank, and at 0.14:1 without the Bank.

Philippine National Bank (PNB)

PNB’s net income under the pooling method was Php9.78 billion for 2018, 14% higher than 2017’s Php8.56 billion, boosted by the sale of Real and Other Properties Acquired (ROPA), at Php3.85 billion, net of taxes, compared to the Php2.71 billion booked in 2017.

Loans and receivables grew 16% to Php581 billion and Net Interest Margin improved to 3.2%.

Tobacco

The volume of the industry has been declining since the substantial increase in excise taxes was implemented under Republic Act (RA) 10351 starting 2013 and the current RA10963 starting 2018. From a low of Php2.72 per pack of 20 sticks in 2012 for the lower tier and Php12 per pack for the upper tier, the excise tax is currently at Php35 per pack, or about 3x to 13x in seven years. This resulted in higher selling prices, which has adversely affected volume.

With the government keeping the illicit trade in check, PMFTC has been able to operate at a level playing field and has enabled the Company to pass on taxes and no longer price our products at economically unsustainable levels. PMFTC’s profitability has thus returned to the 2012 level prior to the substantial increase in excise taxes and the massive proliferation of the illicit trade.

With the government keeping the illicit trade in check, PMFTC has been able to operate at a level playing field and has enabled the Company to pass on taxes and no longer price our products at economically unsustainable levels. PMFTC’s profitability has thus returned to the 2012 level prior to the substantial increase in excise taxes and the massive proliferation of the illicit trade.

Tanduay Distillers, Inc. (TDI)

TDI’s net income for 2018 amounted to Php909million, 44% or Php278 million more than the Php631 million reported for 2017.

Tanduay was ranked as the world’s number one rum in 2018. TDI’s nationwide market share for distilled spirits was at 27.3% as of December 2018, higher than end-2017’s 24.8%.

Eton Properties Philippines, Inc. (Eton)

Eton Properties ended the year with a net income of Php479 million, 38% higher than the Php348 million recorded in 2017.

Revenues were 43% higher y-o-y to Php3.20 billion from Php2.23 billion as both leasing revenues and sales of residential units increased.

Eton completed the construction of Eton Square Ortigas, a stand-alone pocket retail development, adding 2,000 square meters of gross leasable area to its commercial leasing portfolio.

Projects under construction are eWestMall and eWestPod, the retail and office components of the township development, Eton WestEnd Square in Makati, with 16,000 square meters of combined retail and office space targeted for completion by the end of 2019; Cyberpod Five, the Company’s fifth office building in Eton Centris in Quezon City with a total gross leasable area of 43,000 square meters; the 3.7 hectare Eton City Square, the neighborhood mall destination in Eton City, Sta. Rosa, Laguna; and NXTower I, an office building located between Emerald Avenue and Ruby Road in Ortigas. Once completed within 2021, it will have 21,000 square meters of gross leasable area.

Asia Brewery, Inc. (ABI)

ABI’s earnings for 2018 was at Php421 million, 24% lower than the Php552 million reported for 2017.

Revenues were 9% more due to higher revenues from packaging, energy drinks, bottled water and soymilk. Cobra Energy Drink and Vitamilk Soymilk continue to be market leaders while Absolute and Summit bottled water have the second largest market share.