Tanduay Distillers Inc., taipan Lucio Tan’s liquor enterprise, reported 2022 income reaching P1.42 billion, 18 percent higher than a year earlier of only P1.24 billion.
Consolidated revenues stood 26 percent higher to P31.6 billion.
“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,” company president and COO Lucio Tan III said.
Liquor volume went 16 percent last year to 27.49 million cases from 23.69 million cases in the previous year.
It continues to dominate in the Visayas and Mindanao where three out of four liquor drinkers chose Tanduay products.
Consolidated cost of sales was up 28 percent to P28 billion due to higher excise taxes and manufacturing costs. Still, Tanduay rounded 2022 with a 12 percent growth in gross profit to P3.6 billion.
Ethanol volumes were flat but were sold at a higher price last year due to the increased cost of molasses and sugar.
Tanduay’s international business was up 16 percent in 2022, with its Asia-Pacific and Middle East markets posting 293 percent growth.
The brand is sold in 16 states in the U.S. with plans to sell in three more states this year.
In Asia, Tanduay is available in China, Singapore, the United Arab Emirates and Qatar in the Middle East.
Under Tan III, the brand began selling in Europe and now present in Belgium, the Netherlands, Luxembourg, Germany, Poland, the United Kingdom, Austria, Czech Republic, Georgia and Armenia.
However, while the Philippine liquor industry expanded by 6 percent last year, inflation may affect its growth this year as demand for non-basic commodities slows 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.
