Tanduay posts record H1 income on higher revenues, margins

Tanduay Distillers, Inc. (TDI), the liquor and spirits arm of LT Group, Inc. (LTG), posted its strongest first-half performance on record, with net income nearly doubling on higher revenues, improved margins, and market share gains.

TDI reported a net income of P1.36 billion in the first half of 2025, up 91 percent from P712 million a year ago, according to a disclosure recently. Revenues rose 4 percent to P15.25 billion from P14.63 billion in 2024, lifted mainly by higher selling prices in the liquor segment.

Despite revenue growth, cost of sales remained flat at P12.62 billion, boosting gross profit margin to 17 percent from 14 percent. Operating expenses also fell to P886 million from P1.06 billion, as advertising, promotions, and other costs were trimmed.

Tanduay strengthened its presence in the distilled spirits market, raising its nationwide share to 38 percent from 33 percent last year. It continued to dominate in the Visayas and Mindanao with shares of 68.3 percent and 81 percent, respectively.

“This milestone reflects the strength of the Tanduay brand and the loyalty of our consumers across the country,” said TDI president and chief executive officer Lucio Tan III.

The company said its record results contributed to the solid performance of parent firm LTG, which booked an attributable net income of P14.97 billion in the first half, up 17 percent year-on-year. LTG said this was its second-best first-half and second-quarter performance since its follow-on public offering.

Founded in 1854, Tanduay has grown from its Manila roots into a global player. Drinks International magazine recently named it the world’s No. 1 rum brand by volume for the eighth consecutive year, with sales of 23.8 million case liters in 2024, ahead of Bacardi (19.7 million) and Captain Morgan (11.5 million).

Tanduay said it continues to expand abroad, with its products now available in North America, Europe, Asia, the Middle East, and South America.