Tanduay Distillers, Inc., the liquor manufacturing arm of the Lucio Tan Group, reported a 14 percent growth in its updated consolidated net income to P1.42 billion last year. In a statement, the firm said profit growth came on the back of a 26 percent jump in consolidated revenues to P31.6 billion from 2021 as it continued its growth momentum that began in 2019 under the helm of President and COO Lucio Tan III. “We can say that we have overcome the challenges of the past years and are now focused on growing the business further here in the Philippines and other countries,” said Tan. Last month, LT Group reported that Tanduay’s net profit rose 18 percent to P1.47 billion last year from 2021’s P1.24 billion.

Lucio Tan III

“The net income of Tanduay at parent level was lower than what was reported at the consolidated level due to late adjustment for additional provision for loss on the excise tax refund case,” company officials said. They noted that, “The recent ruling of the Supreme Court denying TDI's claim was received after March 7, 2023—the date of approval of the consolidated financial statement.” Tanduay’s liquor volumes went up by 16 percent in 2022 as it continued its dominance in the Visayas and Mindanao, where every three out of four liquor drinkers chose Tanduay products. The Company also grew its share in the overall domestic market. While consolidated cost of sales was up by 28 percent at P28 billion due to higher excise taxes and manufacturing costs, Tanduay still ended 2022 with a 12 percent growth in its gross profit at P3.6 billion. Ethanol volumes were flat, but had higher selling prices last year due to the increased costs of molasses and sugar. Tanduay’s international business, meanwhile, was up by 16 percent in 2022, with its Asia-Pacific and Middle East markets recording a 293 percent growth. So far, the brand has entered the markets of 16 states in the U.S., with plans to enter three more this year. In Asia, it is available in China, the United Arab Emirates, Singapore, and Qatar. Under Tan, the brand began its expansion in Europe. It is now present in Belgium, the Netherlands, Luxembourg, Germany, Poland, the United Kingdom, Austria, Czech Republic, Georgia and Armenia. While the Philippine liquor industry expanded by 6 percent in 2022, inflation may affect its growth this year as demand for non-basic commodities like liquor might slow down. “What the past three years have taught us is to never lose our focus. While a more restrained approach in spending may be called for, we will remain aggressive in our product research and development and marketing efforts,” Tan said.