MANILA, Philippines - LT Group, the holding company of the Philippines' second richest man Lucio Tan, reported a 69 percent drop in attributable net income to P2.16 billion in the first half of the year from P6.95 billion during the same period a year ago.
The decline in LT Group's profits was attributed to lower earnings from its banking and tobacco businesses, as well as losses from its liquor unit.
Philippine National Bank's attributable net income contribution to LT Group reached P1.031 billion (48 percent of the total), followed by its tobacco business which contributed P720 million, Asia Brewery with P628 million and Eton Properties with P38 million. On the other hand, Tanduay Distillers reported a P16 million loss.
PNB's profit fell 48 percent to P3.12 billion in the first six months of the year, due a significant drop in trading gains. In the first half, PNB recorded P1.96 billion in trading gains compared to the P7.97 billion in trading gains reported a year ago.
LTG's income from its tobacco business Philip Morris Fortune Tobacco drastically fell to P720 million in the January to June period, from P2.61 billion a year ago. The company blamed this on the illicit trade in cigarettes.
Asia Brewery, on the other hand, reported a 30 percent increase in earnings to P629 million in the first six months of 2014, on strong sales of Cobra energy drink and Absolute and Summit water.
Tanduay Distillers reported a net loss of P172 million in the first half of 2014, despite an increase in sales volume. The losses were attributed to high raw material costs, as well as selling and marketing expenses.