LT Group, Inc. (LTG) [PSE: LTG] today announced a robust start to the year, reporting an attributable net income of Php7.24 billion for the first quarter of 2025. This represents a significant 13% increase compared to the Php6.40 billion recorded in the same period last year and marks the company’s best first-quarter performance since its follow-on public offering.
Philippine National Bank (PNB) was the largest contributor to the Group’s earnings, accounting for Php3.42 billion or 47% of the total. The tobacco business, represented by Fortune Tobacco Corporation (FTC), contributed Php2.80 billion or 39%. Tanduay Distillers, Inc. (TDI) and Asia Brewery, Inc. (ABI) added Php525 million and Php178 million, respectively, representing 7% and 3% of the total. Eton Properties Philippines, Inc. (Eton) and Victorias Milling Company, Inc. (VMC) contributed Php143 million (2%) and Php154 million (2%), respectively.
In March 2025, LTG declared dividends totaling Php3.25 billion (Php0.15 per share regular, Php0.15 per share special), reflecting an 11.2% payout rate. As of March 31, 2025, the company’s Debt-to-Equity Ratio stood at 3.17:1 with the Bank and a conservative 0.11:1 without the Bank. The parent company maintained a healthy cash balance of Php2.07 billion.
Key Highlights of Subsidiaries:
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Philippine National Bank (PNB): PNB reported a net profit of Php6.09 billion in 1Q25, a 15% increase from Php5.31 billion in 1Q24. This growth was driven by a 7% year-on-year increase in gross interest income to Php17.17 billion, fueled by higher yields and increased volumes across various income streams. Net interest margin improved to 4.5% from 4.4%, resulting in a 9% rise in core income to Php12.71 billion. PNB also saw a 20% surge in net service fees and commission income, and higher trading and investment securities and net foreign exchange gains.
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Fortune Tobacco Corporation (FTC): FTC’s net income reached Php2.81 billion in 1Q25, a 6% increase from Php2.66 billion in the previous year. This was primarily due to a 7% increase in equity in net earnings from PMFTC, which amounted to Php2.76 billion. Despite a flat industry volume, PMFTC’s volume slightly increased, coupled with price adjustments implemented in November 2024 following excise tax increases. PMFTC is also expanding into smoke-free alternatives, including IQOS ILUMA and ZYN oral nicotine pouches.
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Tanduay Distillers, Inc. (TDI): TDI experienced a significant 107% surge in net income to Php528 million in 1Q25, up from Php255 million in 1Q24. This remarkable growth was driven by a 22% increase in net revenues to Php7.19 billion, attributed to higher sales volume and increased selling prices in the liquor segment. TDI also saw an improvement in gross profit margin to 16% from 13% and strengthened its dominant market share in the Visayas and Mindanao regions, while also increasing its nationwide market share for distilled spirits.
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Asia Brewery, Inc. (ABI): ABI’s net income increased to Php178 million in 1Q25 from Php155 million in the same period last year. While beverage revenues slightly decreased, a faster decline in the cost of sales led to an improved gross profit margin of 24% from 21%. Cobra Energy Drink maintained its leading position in the energy drink market, and Absolute and Summit bottled water brands ranked third among local water brands.
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Eton Properties Philippines, Inc. (Eton): Eton reported a net income of Php144 million for the first three months of 2025, higher than the Php116 million in 1Q24. Leasing revenues remained stable, and real estate sales contributed as the company continued to sell remaining inventory. Eton’s leasing portfolio comprises 269,400 square meters, predominantly office space.
