LTG 3Q consolidated net income 95.4% higher

LTGLT Group, Inc.’s (LTG)’s consolidated net income for the nine months ended September 30, 2015 was P=7.0 billion, 95.4% higher than the P=3.6 billion reported in the previous period.

Consolidated net income attributable to equity holders of LTG increased from P=2.5 billion in 9M14 to P=4.7 billion in 9M15. The improvement in net income from the four core businesses, namely banking, distilled spirits, property development and tobacco contributed to this growth. The banking segment reported a net income of P=5.3 billion or 41.5% better than the previous period’s P=3.7 billion. The distilled spirits, property development and tobacco segments’ net income increased by P=420 million, P=132 million and P=61 million, respectively. On the other hand, beverage segment’s net income declined by P=103 million to P=694 million in 9M15.

Consolidated revenues increased by 6.7% from P=37.8 billion in 2014 to P=40.3 billion for the nine month period ended September 30, 2015. Banking revenues increase of 10.0% or P=1.8 billion from P=18.1 billion in 2014 to P=19.9 billion in 2015 mainly due to higher interest and service fees and commission income. The beverage and distilled spirits segments’ revenue remained flat at P=9.8 billion and P=8.7 billion, respectively, for the periods ended September 30, 2015 and 2014. The property development segment revenue increased by 57.0% to P=1.9 billion in 2015.

Cost of sales increased by 1.5% from P=18.3 billion for the nine-month period ended September 30, 2014 to P=18.6 billion for the same period in 2015, mainly due to the bank’s higher interest expense on bills payable and others, and service fees and commissions expense.

Operating expenses were at P=17.4 billion in 2015 and P=18.7 billion in 2014 as selling and general and administrative expenses decreased by 5.4% and 6.9%, respectively. The decline in selling expenses was mainly on account of lower advertising and promotional expenses of the distilled spirits segment while general and administrative expenses were lower mainly due to the banking segment’s reversal of a previously booked probable loss from the National Steel Corporation case.


The above information is an excerpt from the report submitted to PSE. Click here to read more the full disclosure.

DIVIDEND PAYOUT

LTG is in it’s five year in a row to give cash dividends to its shareholders. Annual dividend yield is at 1.16% with Dividend payout ratio at 39.02%.

 

PRICE FORECAST

Price forecast for LTG is not that favorable at this time for long term investor. Note that the valuation technique used in this site is quick and simple, hence you are hereby warned to take further analysis before investing your hard earned money. Here’s a screen shot of my quick and simple valuation with other relevant data for your reference.

LTG

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