LT Group, Inc. (LTG) announced a 9% reduction, with the tobacco industry contributing 3-fourths to its overall net attributable revenue of P21 billion in 2020.
The listed holding company Lucio C. Tan recorded in a statement 80% or P16.83 billion of their tobacco market, up almost 8% from the previous year, as a gross attributable revenue.
“Higher incomes are due to the higher share of Malboro premium with clients moving from the middle-price fortune and higher rates for taxation,” said LTG.
Despite the decline in the volume of the industry by 12% due to increased excise taxes and stringent lock-in policies, the tobacco industry remained high.
The Philippine National Bank (PNB) Banking Unit added $1.55 billion or 7% to the total attributable profits of the LTG. This is 72% smaller than its share of P5.57 billion in 2019.
In accordance with its system of pooling, PNB’s net income for 2014 was P2,8 billion, down by 72% from the 2019 posted P9,94 billion.
Because of the effect of pandemic on the economy, the PNB has established a provision of P16,9 billion on loan losses booked in 2020 almost six times higher than the preceding year provision of P2,9 billion.
Meanwhile, for 2020, Tanduay Distillers, Inc. (TDI) accounted for P1.1 billion, or 5%, of LTG’s net revenue, which was almost 65% over the contribution produced in the previous year in relation to P667 million.
“With the increased production and rates for extra excise duties, liquor income was 33 per cent higher. With smaller quantities and lower retail sale rates, bioethanol sales were 24% lower,” LTG said without clear statistics.
TDI concluded the year with a 22.5% national market share in distilled spirits, above the 27.8% share in 2019.
The contribution from Eton Properties Philippines, Inc. to the net attributable profits of LTG fell by 11 percent from the previous year, by P799 million or 4 percent. Net profits of Eton fell by 11 percent in 2020 to P802 million.
Asia Brewery, Inc (ABI) accounted for 46% higher than the previous year, representing P 583 million or 3% of LTG’s total attributable profits.
The Firm said that its net profits sum to P591 million, “making a substantial contribution to ABI’s dedication to brewing and selling Heineken and Tiger beers in the Philippines because it has no losses to the joint projects with Heineken.”
“LTG remains secure in its balance sheet,” said the firm. “The ratio of debt and equity was [PNB] at 4.30:1 and 0.16:1 without [PNB].”