The Market Monitor Minding the Nation's Business
Tanduay Distillers, Inc. (TDI) achieved a milestone in 2024 by posting a record net income of P2.15 billion, marking a 37% increase from the previous year’s P1.57 billion.
The impressive growth was powered by higher sales volumes—up 2% for liquor and 1% for bioethanol—as well as strategic pricing adjustments that pushed segment revenues to P33.85 billion, up by 13%.
Despite economic challenges such as inflation and climate-related disruptions affecting consumer behavior, TDI solidified its dominance in Visayas and Mindanao, where it holds 70.6% and 79.6% market shares, respectively. Nationwide, its share in the distilled spirits segment registered a slight dip to 32.2% from 32.9% in 2023 amid intensified competition.
For the seventh consecutive year, Tanduay was recognized as the world’s top-selling rum in 2023, with 23.4 million case liters sold, based on Drink International Magazine’s The Millionaire’s Club. It also ranked seventh among the world’s highest-selling spirits.
In a strategic pivot to sharpen focus on its core operations, TDI divested from Asian Alcohol Corporation in October 2024. The P1.8 billion deal includes a P480 million upfront payment and a four-year payment plan, aligning with TDI’s long-term strategy to streamline operations and improve financial sustainability.
TDI’s performance played a pivotal role in driving the earnings of its parent firm, LT Group, Inc. (LTG), which reported a 14% increase in net income to P28.92 billion in 2024. TDI accounted for P2.14 billion, or 7% of the group’s total earnings.
Other LTG subsidiaries also posted strong results: Philippine National Bank’s net income climbed 11% to P21.18 billion; Asia Brewery, Inc. posted a 46% profit surge to P841 million; and Victorias Milling Company contributed P492 million.
Reinforcing its commitment to shareholder returns, LTG declared a special cash dividend of 35 centavos per share in November 2024, totaling P3.79 billion. This brought the group’s total dividend payout for the year to P13.53 billion, or P1.25 per share, with a payout ratio of 53.2%.
Backed by solid financials, strategic moves, and continued market leadership, Tanduay remains a cornerstone of LTG’s dominance in the Philippine corporate arena.