Tanduay doubles profits on higher liquor prices
Tanduay Distillers Inc. nearly doubled its profit in the first semester to a record P1.36 billion, thanks to higher liquor selling prices.
The liquor and spirits arm of conglomerate LT Group Inc. on Monday said its revenues in the January to June period had climbed 4 percent to P15.25 billion.
“By focusing on operational efficiency and brand building, we are well-positioned to sustain our leadership in the liquor industry and pursue further growth in both domestic and international markets,” Tanduay president and CEO Lucio Tan III said in a statement.
According to Tanduay, cost of sales was flat at P12.62 billion, while operating expenses shrunk by 16.4 percent to P886 million as advertising, promotion and other costs declined.
The company also grew its nationwide market share in the distilled spirits segment to 38 percent from 33 percent in the same period last year.
Tanduay earlier announced plans to broaden the reach of its high-end Asian Rum and Double Rum bottles, which were previously only available for export because of high demand in the United States.
The bottles were significantly more expensive than Tanduay’s other brands at P3,000 versus the usual P200 for each 750-milliliter bottles of Tanduay White, for example.
The company likewise noticed that millennials were shifting their drinking habits to hard liquor versus the flavored mixes favored by Tanduay’s younger market.
Last year, Tanduay was named the world’s No. 1 rum for the eighth consecutive year by Drinks International magazine.
It sold 23.8 million case liters in 2024, moving past global competitors Bacardi (19.7 million) and Captain Morgan (11.5 million).
Meanwhile, parent firm LT Group registered a 17-percent jump in its first-semester earnings to P14.97 billion on the strong performance of its businesses, especially banking.
Revenues had likewise increased by 4.4 percent to P63.81 billion.
Banking remained the main net income contributor at 47 percent, followed by tobacco at 36 percent.
