Lucio Tan’s tobacco and booze business boost 2016 performance
Billionaire Lucio Tan’s tobacco and alcohol businesses exhibited robust growth in 2016, propelling the LT Group Inc.’s net income to P9.4 billion, 42 percent higher compared to 2016.
In a disclosure to the stock exchange, LTG said its tobacco business contributed 27 percent to last year’s earnings, with Asia Brewery Inc. accounting for 19 percent and Tanduay Distillers Inc., bringing in 10 percent.
LTG’s other companies are Philippine National Bank which contributed 36 percent to earnings, Eton Properties Philippines Inc. accounted for four percent and Victorias Milling Company Inc. accounted for two percent.
LTG said income from its tobacco business soared by 149 percent to P2.6 billion last year because of the change in the mix of its sales, with the premium brand Marlboro accounting for a higher share of total volume.
Asia Brewery, meanwhile, reported earnings of P1.76 billion last year, 60 percent higher than in 2015, due in part to an extraordinary income of P594 million from the revaluation of its beer assets after it formed a joint venture with Heineken. Its energy drink, Cobra, and soymilk, Vitamilk, are market leaders while its Absolute and Summit bottled water have the second largest market share.
Tanduay Distillers’ net income more than doubled to P908 million last year with the strong sales of bio-ethanol. Tanduay Distillers’ sales volume increased by only two percent, with its market share even shrinking slightly to 23 percent from 24 percent.
Tanduay Distillers, Inc. (TDI) TDI’s earnings for full-year 2016 rose to Php908 million, more than double the Php422 million generated in 2015. The growth is mainly attributed to the start of the contribution of bio-ethanol sales in 2016. There was a 2% increase in the volume of liquor sales. However, TDI’s market share based on Nielsen’s customer off-take on volume was at 23% nationwide as of the end of 2016, a slight decline from the 24% as of end-2015. Tanduay continues to be the dominant player in the Visayas and Mindanao areas where market share increased to 60% as of end-December 2016 from 58% in end-2015.