LT Group, Inc. (LTG) today (November 14, 2014) reported an attributable net income of Php2.5 billion in the first nine months of 2014, compared to Php7.6 billion for the same period in 2013, amidst the difficult operating environment of its various businesses.

Philippine National Bank’s (PNB) attributable net income contribution to LTG amounted to Php1.3 billion or 52% of total. Asia Brewery, Inc. (ABI) contributed Php796 million or 32% of total, followed by the tobacco business at Php462 million or 19% of total. Eton Properties accounted for Php65 million or 3%. Tanduay Distillers, Inc. (TDI), posted an Php83 million loss.

LTG’s balance sheet remained strong, with the parent company’s cash balance at Php9.9 billion as of end-September 2014. Debt-to-Equity Ratio was at 3.31:1 as of end-September 2014 with the bank, and at 0.19:1 without the bank.

Philippine National Bank (PNB)

PNB reported a profit of Php3.7 billion in 9M14, 46% lower than 9M13’s Php6.8 billion. This is largely due to higher trading gains last year. In 9M13, PNB booked Php7.6bn in trading gains, substantially higher than the Php1.2 billion realized in 9M14.
Meanwhile, Net Interest Income was 21% higher y-o-y to Php12.3 billion on the back of lower costs, coupled with the 14% ytd growth in loans.

Asia Brewery, Inc. (ABI)

ABI’s net income for the first nine months of 2014 reached Php797 million, 27% more than the Php626 million reported in the same period in 2013.

ABI’s brands Cobra (carbonated energy drink), and Absolute and Summit (water) continue to be market leaders. Tanduay Ice has over 90% of the alcopop market.

Tobacco

LTG’s income from the tobacco business amounted to Php462 million for the first nine months of 2014, from the Php2.8 billion reported in 9M13, as PMFTC continues to be adversely affected by the illicit trade in cigarettes.

The Bureau of Customs (BoC) has taken action by closing down the customs bonded warehouse of a competitor and assessed it for custom duties for over Php1 billion. As the assessment only covers 2013 imports, the BoC continues to review the company’s importations for the past three years.

Meanwhile, the Government’s Internal Revenue Stamps Integrated System (IRSIS) is facing delays due to technical issues with the production of the stamps. The Bureau of Internal Revenue (BIR) has issued another amendment to its Revenue Regulations, and the implementation has been moved to December 1, 2014 when all local manufacturers are required to affix numbered stamps on each pack of cigarettes.

Eton Properties

Eton’s net income amounted to Php65 million for 9M14.

Leasing revenues were higher with the contribution of Centris Cyberpod Three, the latest BPO office building at Eton Centris, in Quezon City, Metro Manila.

Tanduay Distillers, Inc. (TDI)

TDI’s sales volume increased in the first nine months of 2014 due to intensified marketing efforts for its flagship product, Tanduay Five Years.

However, due to higher raw material costs, coupled with higher selling and marketing expenses, the company reported a loss of Php83 million for 9M2014. TDI was able to reverse part of the losses of 1H14, generating an income of Php89 million in the third quarter of 2014.