MANILA, Philippines – The conglomerate of Filipino tycoon Lucio Tan booked record-high profits in 2024 as its tobacco and banking units saw double-digit growth.
In its annual report filed with the Philippine Stock Exchange, the LT Group (LTG) reported that its attributable net income grew 14% in 2024 to P28.92 billion.
Fortune Tobacco Corporation (FTC) was the biggest contributor to LTG’s profits, chipping in P12.7 billion or 44% of the group’s net income.
FTC’s profits grew 12% in 2024 due to higher dividends from PMFTC, the Philippine affiliate of Philip Morris International, where it has a 49.6% stake.
Despite FTC’s rebound from weaker profits in the first half, LTG noted that cigarette volume continued to drop 11% in 2024 due to affordability concerns, rising illicit trade, and the growing popularity of vaping. The Philippine government seized 1.2 billion illegal cigarette sticks in 2024, double the 600 million sticks it confiscated in 2023.
Philippine National Bank (PNB) was the second biggest contributor to LTG’s net income, bringing in P11.89 billion. The banking unit saw its net interest income climb 11% to P49 billion because of higher yields and loan volumes.
PNB’s operating expenses dropped 2% to P33.6 billion due to lower provisions for impairment, credit, and other losses.
Tanduay Distillers saw record profits of P2.15 billion in 2024 due to higher volumes of liquor and bioethanol, as well as higher liquor prices. Despite a slight decline in its market share nationwide to 32.2%, the Tan-owned distillery still captured a dominant 70% market share in the Visayas and Mindanao.
Asia Brewery is another LTG unit that saw record profits, as its 2024 bottom line jumped 46% to P841 million. The beverage manufacturer attributed this to a 5% increase in its top line as sales across major product lines grew year-on-year. Cobra energy drink continued to capture 53% of the market in 2024, while water brands Absolute and Summit held on to their 17% share of the market.
Eton Properties’ net income dropped 53% to P212 million because of higher operating expenses amid lower leasing income. A decline in occupancy and rental prices caused leasing revenues in 2024 to slip 1% to P2.03 billion.
However, Eton logged P501 million in residential sales last year as it resumed the sale of its remaining inventory in its projects in Quezon City and its Eton City township in Laguna. – Rappler.com