LT Group, Inc., the diversified conglomerate controlled by Filipino tycoon Lucio Tan, reported a 23.47% year-on-year increase in attributable net income to P9.54 billion for the second quarter, up from P7.73 billion in the same period last year. The company described the result as part of its strongest first-half performance since its follow-on offering, fueled by improved operating results across its banking, tobacco, and distilled spirits segments.

Second-quarter revenue climbed 6.32% to P34.72 billion from P32.65 billion, while operating income advanced 22% to P13.31 billion from P10.91 billion. Gross income grew 8.08% to P18.97 billion from P17.55 billion, and equity in net earnings of associates and joint ventures surged 53.13% to P3.60 billion from P2.35 billion.

Operating expenses edged up 2.97% to P9.26 billion from P8.99 billion. Other income, net, jumped 60.54% to P2.79 billion from P1.74 billion, while income before tax rose 27.3% to P16.1 billion from P12.65 billion.

For the first six months of the year, attributable net income increased 13.8% to P17.03 billion from P14.97 billion a year earlier. The performance underscores how LT Group's profit base remains heavily concentrated in banking and tobacco, which together accounted for the bulk of first-half earnings, while smaller segments such as beverages and property continued to lag.

Banking

Philippine National Bank (PNB), one of the country's largest privately owned commercial banks, contributed P8.21 billion to LT Group's first-half attributable earnings, compared with P7.03 billion in the prior-year period. The banking segment's net income climbed 16.7% to P14.61 billion from P12.52 billion, driven by growth in net interest income, net service fees and commission income, and other operating income.

Gross interest income edged 1% higher to P35.14 billion, supported by stronger earnings from loans and receivables. Net service fees and commission income rose 8.6% to P3.06 billion. Other income more than doubled to P4.13 billion from P1.71 billion, largely reflecting higher gains from the sale of foreclosed assets.

Tobacco

Fortune Tobacco Corp. (FTC) reported first-half net income of P6.16 billion, a 12.7% increase from P5.46 billion a year earlier. The gain was primarily driven by higher equity earnings from PMFTC, Inc., the joint venture between FTC and Philip Morris International that commands the largest share of the Philippine cigarette market, in which FTC holds a 49.6% stake.

"PMFTC's profitability was boosted by price increases implemented in March 2026, which contributed to the segment's strong performance," the company said.

PMFTC raised cigarette prices in March after a 5% annual increase in excise taxes took effect on January 1. The adjustment brought the excise tax to P69.46 per 20-stick pack under Republic Act No. 11346, which mandates annual 5% excise hikes on tobacco products through 2024 and beyond.

Industry cigarette volume reached 22.5 billion sticks in the first half, up 2% year on year. PMFTC's offtake volume also rose 2% to 11 billion sticks from 10.9 billion.

Distilled Spirits

Tanduay Distillers, Inc., one of the world's largest rum producers by volume, recorded a 16% increase in first-half net income to P1.58 billion from P1.36 billion. Net revenue grew 9.4% to P16.68 billion from P15.25 billion, supported by higher selling prices and increased sales volume.

Cost of sales rose to P13.61 billion from P12.62 billion due to higher excise taxes, raw material costs, and freight expenses. Gross profit margin nonetheless improved to 18% from 17%.

Tanduay reported robust performance in the Visayas and Mindanao regions, where it held market shares of 74.4% and 82.4%, respectively. Its nationwide distilled spirits market share rose to 40.8% from 39.2% a year earlier.

Beverages

Asia Brewery, Inc. posted first-half net income of P378 million, down 23% from P491 million a year earlier. Revenue increased 2% to P9.02 billion on higher sales volumes across its beverage portfolio, led by energy drinks and bottled water.

Property

Eton Properties Philippines, Inc. reported first-half net income of P291 million, down from P352 million, as the prior-year figure included one-time gains. Leasing revenue rose 3.6% to P949 million and represented 80% of total revenue, while real estate sales increased 12.3% to P238 million from P212 million. Operating expenses were broadly unchanged at P390 million.

As of June, Eton's leasing portfolio spanned 260,000 square meters, comprising 189,100 sq.m. of office space, 61,000 sq.m. of commercial space, and 9,900 sq.m. of residential space.

At the local bourse on Tuesday, LT Group shares closed 0.27% higher at P14.70 each. — A.G.C. Magno