With a record net income of Php2.15 billion in 2024, Tanduay Distillers, Inc. (TDI) reported a staggering 37% rise over the previous year's Php1.57 billion. Higher sales volumes of both liquor and bioethanol—which increased by 2% and 1%, respectively—as well as calculated price increases that increased segment revenues by 13% to Php33.85 billion were the main drivers of this rise.
TDI maintained its dominant market shares of 70.6% and 79.6% in the Visayas and Mindanao areas, respectively, despite economic challenges such as inflationary pressures and weather-related interruptions that affected consumer spending. However, because of increased competition in the industry, TDI's market share for distilled spirits fell marginally to 32.2% on a national level from 32.9% in 2023.
In October 2024, TDI sold its stake in Asian Alcohol Corporation as part of a strategic plan to simplify its holdings and concentrate on its core business. The Php1.8 billion deal comprises an upfront cash payment of Php480 million and is arranged with a four-year payment term. This deal is in line with TDI's long-term goals of improving economic viability and business optimization.
Due in large part to TDI's outstanding performance, its parent company, LT Group, Inc. (LTG), achieved record-breaking earnings. With TDI making up Php2.14 billion, or 7% of the total, the conglomerate's attributable net income increased by 14% to Php28.92 billion in 2024 from Php25.42 billion the year before. The steady expansion of the liquor division highlights how important it is to LTG's diverse business portfolio.
Other LTG subsidiaries reported strong financial achievements in addition to Tanduay. The group's top tobacco company, Fortune Tobacco Corporation (FTC), reported a 12% increase in net income of Php12.77 billion, fueled by favorable foreign exchange gains and increased dividends from PMFTC. At the same time, Philippine National Bank's (PNB) net income increased by 11% to Php21.18 billion.
A 5% increase in sales across its main product lines helped Asia Brewery, Inc. (ABI) achieve a 46% increase in net income to Php841 million. In contrast, lower leasing revenue and increased operating costs caused Eton Properties Philippines, Inc. (Eton) to have a 53% drop in net income to Php212 million. LTG's earnings were boosted by Php492 million from Victorias Milling Company.
In November, LTG announced a special cash dividend of Php0.35 per share, or Php3.79 billion, reaffirming its dedication to providing value to shareholders. This resulted in a 53.2% payment rate, or Php1.25 per share, or Php13.53 billion, for the entire year-to-date dividend payout.
Tanduay Distillers continues to be a vital component of LTG's success, solidifying the conglomerate's place as a major player in the Philippine economic scene with its strong financial results, strategic initiatives, and sustained market leadership.
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