Infusion of fresh ideas in the Lucio Tan group or LTG underscored by the appointment of Lucio Tan III, the 30-year-old grandson of taipan Lucio Tan, as president has brought the conglomerate to the road of profitability.
After a year-long leadership transition period, the young Tan replaced his uncle Michael Tan, who had been LTG president since 2010 and had helped the company transform into a multi-billion peso conglomerate.
In 2022, the LT Group managed to clock in P20.25-billion attributable net income — a 24 percent increase from the previous year.
LTG’s tobacco business contributed 61 percent of the total attributable net income, followed by Philippine National Bank at P6.61 billion and Tanduay Distillers at P1.47 billion.
“As in the past years that we were able to overcome the challenges of the pandemic, my commitment remains in delivering consistent results and prioritizing the profitability of every company in our portfolio,” Tan III said during the company’s annual stockholders’ meeting on Wednesday.
Staying true to core values
“Additionally, we will continue to strive in creating value for our stakeholders. By staying true to our core values and embracing innovation, we are confident that we can build a resilient and thriving business that will endure for the long term,” he added.
Tan III has also been president and COO of Tanduay Distillers Inc. since 2019, and PAL Holdings Inc. vice president since 2021.
For Tan III, focusing on further optimizing the company’s business processes is an important factor to maintain its growth momentum.
Likewise, Tan III expressed his gratitude to LTG’s senior management and employees for their hard work and dedication, which has led to LTG’s growth into a profitable group of companies.
Endured headwinds
During the meeting, outgoing president Michael Tan recounted how LTG endured headwinds since its initial public offering in 2013.
“It was how your Company built the way, the tried and tested way, through hard work, cooperation and a strong financial position built through the years that we were able to hurdle these challenges,” he said.