MANILA, Philippines - Lucio Tan's LT Group saw its profits plummet more than 50 percent to P4.2 billion in 2014, dragged by its tobacco and banking businesses.
Owned by the country's fifth richest man, LT Group said its attributable net income was 52 percent lower than the P8.7 billion profit it posted in 2013.
The company's income from its tobacco business fell sharply to P99 million in 2014, from P3.9 billion in 2013.
"PMFTC (Philip Morris Fortune Tobacco) continues to be adversely affected by the illicit trade in cigarettes," LT Group said.
PMFTC had earlier urged the Aquino government to look into the alleged tax under-declaration by local cigarette manufacturer Mighty Corp. Mighty is being accused of selling its products below the economical costs despite higher taxes.
PMFTC is hoping the implementation of the internal revenue stamps system would help improve its competitiveness in the market.
Meanwhile, Philippine National Bank's net income contribution to LTG reached P2.4 billion, representing 52 percent of the total.
In 2014, the bank's profit fell 10 percent to P5.6 billion from P6.2 billion in the previous year when it booked P7.2 billion in trading gains.
Asia Brewery contributed 27 percent of the total or P1.1 billion to LTG. This was an 8 percent increase from the previous year's net income.
Tanduay Distillers posted a net income of P101 million for the full year, on the back of a 17 percent increase in sales volume.
Eton Properties' net income reached P120 million in 2014.
In this year's edition of Forbes Billionaires' List, Tan's ranking fell to fifth place among the richest in the Philippines, from second place last year. His net worth fell to $4.4 billion as of March 2, 2015, from $6.1 billion a year ago.