Tanduay Distillers, Inc. (TDI) posted a record net income of Php2.15 billion in 2024, marking a remarkable 37% increase from Php1.57 billion in the previous year. This growth was driven by a combination of higher sales volumes in both liquor and bioethanol, which rose by 2% and 1%, respectively, along with strategic price increases that boosted segment revenues by 13% to Php33.85 billion.
Despite economic headwinds, including inflationary pressures and weather-related disruptions that impacted consumer spending, TDI reinforced its leadership in the Visayas and Mindanao regions, where it maintains commanding market shares of 70.6% and 79.6%, respectively. However, on a national scale, TDI’s market share for distilled spirits slightly dipped to 32.2% from 32.9% in 2023 due to heightened competition in the sector.
In a strategic move to streamline its portfolio and focus on core operations, TDI divested its investment in Asian Alcohol Corporation in October 2024. The sale, valued at Php1.8 billion, is structured with a four-year payment term and includes an upfront cash payment of Php480 million. This transaction aligns with TDI’s long-term vision of optimizing its business and enhancing economic viability.
TDI’s stellar performance significantly contributed to the record-breaking earnings of its parent company, LT Group, Inc. (LTG). The conglomerate’s attributable net income surged by 14% to Php28.92 billion in 2024 from Php25.42 billion in the previous year, with TDI accounting for Php2.14 billion or 7% of the total. The liquor subsidiary’s consistent growth underscores its vital role in LTG’s diversified business portfolio.
Beyond Tanduay, other LTG subsidiaries also posted robust financial results. Fortune Tobacco Corporation (FTC), the group’s leading tobacco unit, reported a net income of Php12.77 billion, reflecting a 12% increase, driven by higher dividends from PMFTC and favorable foreign exchange gains. Meanwhile, Philippine National Bank (PNB) recorded an 11% uptick in net income, reaching Php21.18 billion.
Asia Brewery, Inc. (ABI) delivered a 46% increase in net income to Php841 million, buoyed by a 5% rise in sales across its major product lines. In contrast, Eton Properties Philippines, Inc. (Eton) saw a 53% decline in net income to Php212 million due to lower leasing income and rising operational expenses. Victorias Milling Company contributed Php492 million to LTG’s earnings.
Reaffirming its commitment to delivering value to shareholders, LTG declared a special cash dividend of Php0.35 per share in November, amounting to Php3.79 billion. This brought the total year-to-date dividend payout to Php1.25 per share or Php13.53 billion, representing a 53.2% payout rate.
With its robust financial performance, strategic initiatives, and continued market leadership, Tanduay Distillers remains a key pillar of LTG’s success, reinforcing the conglomerate’s position as a dominant force in the Philippine business landscape.