Tanduay is on a roll—again.
In 2024, Tanduay Distillers, Inc. (TDI) achieved a major milestone, posting a record net income of Php2.15 billion, a remarkable 37% jump from the previous year’s Php1.57 billion. This surge in earnings was fueled by solid performance across both its liquor and bioethanol segments, with volumes rising by 2% and 1%, respectively. Strategic price adjustments also helped boost segment revenues to Php33.85 billion, up 13% year-on-year.
Staying Strong Amid Challenges
While inflation and erratic weather patterns dampened consumer spending across industries, Tanduay held its ground—and then some. The company maintained its dominance in the Visayas and Mindanao, where it commands market shares of 70.6% and 79.6%, respectively.
However, on a national level, competition intensified. Tanduay’s overall distilled spirits market share slightly dipped from 32.9% in 2023 to 32.2% in 2024. But make no mistake—Tanduay remains the brand to beat, particularly outside Metro Manila.
Strategic Moves for a Stronger Future
In a bid to sharpen its focus and streamline operations, TDI made a bold decision in October 2024: it sold off its stake in Asian Alcohol Corporation for Php1.8 billion. The deal includes an upfront payment of Php480 million, with the rest to be paid over four years. This move aligns with the company’s long-term strategy to concentrate on core business areas and improve financial efficiency.
Powering Up the LT Group
Tanduay’s stellar performance also had a ripple effect on its parent company, LT Group, Inc. (LTG). LTG’s attributable net income rose by 14% to Php28.92 billion, with Tanduay contributing Php2.14 billion, or 7% of the group’s total profits.
Other LTG businesses also delivered strong numbers:
- Fortune Tobacco Corporation: Php12.77 billion in net income, up 12%, thanks to higher dividends and favorable forex.
- Philippine National Bank (PNB): Php21.18 billion in net income, up 11%.
- Asia Brewery, Inc. (ABI): Php841 million in net income, a 46% increase driven by solid sales growth.
- Victorias Milling Company: Contributed Php492 million to LTG’s earnings.
- Eton Properties: The only outlier, reporting a 53% drop in net income to Php212 million due to lower leasing income and higher costs.
Big Dividends for Shareholders
With the group’s strong financial footing, LTG declared a special cash dividend of Php0.35 per share in November—totaling Php3.79 billion. This brought year-to-date dividends to Php1.25 per share or Php13.53 billion, reflecting a generous 53.2% payout rate.
