Lucio Tan Group Makes P20-B Profit

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Taipan Lucio Tan’s flagship holding company, LT Group Inc. (LTG), weathered the second year of the COVID-19 pandemic thanks to cigarettes and alcoholic beverages despite a drop in sales volume.

LTG said in a statement that last year’s net profit fell 3.7% to 20.25 billion pesos, with 86% coming from the contribution of its tobacco business under PMFTC Inc., whose brands include Marlboro and Fortune.

LTG said tobacco recorded net income of 17.50 billion pesos, up 4%, but industry-wide volume fell 10.8% to 55.4 billion. sticks “due to the impact of the COVID-19 pandemic and various quarantine protocols on the purchasing power of consumers.”

“Illicit activities have increased, including contraband and locally produced goods,” LTG added while acknowledging the government’s efforts to curb illicit activities.

LTG also warned against aggressive tobacco tax increases.

“LTG is not against tax increases, but believes that increases should be moderate. Continued price increases to pass on higher excise taxes could result in further volume declines,” the company said in the statement.

Tanduay Distillers Inc. (TDI), whose net profit in 2021 increased by 11% to P1.24 billion, comes second in terms of profit contribution. TDI also saw a decline in alcohol sales volume while bioethanol revenues increased.

TDI ended the year with a national market share for distilled spirits at 26.6% compared to 22.5% the previous year. INQ

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