Philippine National Bank (PSE: PNB) contributed PhP3.51 billion or 53% of total income. Asia Brewery Inc.’s (ABI) contribution added PhP1.10 billion or 17% of total, followed by the tobacco business at PhP1.04 billion or 16%. Tanduay Distillers Inc. (TDI) accounted for PhP422 million or 6%, while Eton Properties Philippines Inc. added PhP312 million or 5%. Equity in net earnings from the company’s stake in VMC provided PhP214 million or 3% of total. As of end-2015, LTG’s stake in VMC stood at 22.59%. With the purchase of additional shares in February 2016, LTG’s stake in VMC is currently at 30.17%.
LTG’s balance sheet remains strong, with the parent company’s cash balance at PhP2.6 billion as of the end of 2015. Debt-to-Equity Ratio was at 3.41:1 as of end-2015 with the bank, and at 0.13:1 without the bank.
Philippine National Bank
PNB income reached PhP6.8 billion for 2015, 15% more than the PhP5.9 billion reported in 2014. Net Interest Income was at PhP17.6 billion for 6% more than 2014’s PhP16.7 billion, while Net Service Fees and Commission Income increased by 38% to PhP3.6 billion. Trading and Foreign Exchange Gains declined to PhP1.8 billion or by 34%, while Other Income was 35% lower at PhP3.7 billion.
ABI’s unaudited income for 2015 reached PhP1.099 billion, 2% lower than the PhP1.122 billion reported for 2014.
Our Cobra energy drink, Absolute and Summit water, Tanduay Ice alcopop and Vitamilk soymilk continue to be market leaders. However, intense competition in the beverage market continues to affect volumes and margins
The tobacco business reported a net income of PhP1.04 billion for 2015, significantly more than the PhP148 million reported for 2014.
Equity in net earnings from LTG’s 49.6% stake in PMFTC reached PhP975 million, 89% higher than the PhP515 million realized in 2014. While there has been some improvement, the illicit trade continues to affect the overall profitability of the cigarette business.
TDI’s unaudited net income for 2015 reached PhP422 million, significantly higher than the Php101million reported in 2014.
Revenues were relatively flat, as lower volumes were offset by price increases. According to Nielsen, TDI’s market share improved to 24.1% as of the end of 2015 from 22.0% as of the end of 2014. The market share gain was from the Visayas and Mindanao areas.
Eton’s income for 2015 amounted to PhP313 million, or PhP193 million more than the PhP120 million reported in 2014.
Revenues were 9% higher with higher lease rates for new or renewed contracts in office buildings. To increase its leasing portfolio, Eton will add a fifth BPO office tower at Eton Centris in Quezon City.