Tanduay reports P1.1B net income in 2011 despite lower volume

TANDUAY Distillers Inc. ( TDI) nearly doubled its net income last year despite slower volume growth.

In a disclosure to the Philippine Stock Exchange, Tanduay Holdings Inc. said TDI’S net grew by 92 percent to P1.1 billion last year.

The company’s revenues rose by 8.8 percent year-on-year to P12.3 billion from P11.3 billion following a 1.4 percent increase in volume and 7.4 percent improvement in average selling prices.

Sales volume growth grew at a slower pace of 1.4 percent compared to the previous year’s 7.5 percent and the average growth rate of 8 percent in the last five years.

“Apart for the year 2010 being an election year, sales performance in 2011 was also affected by the slowdown in the domestic economy which grew by only 3.7 percent [last] year against the [previous] year’s 7.3 percent,” Tanduay Holdings said.

TDI, which produces distilled spirits consisting of rum, wine, gin and brandy, accounted for 98 percent of Tanduay Holding’s total sales of P11.497 billion in 2010.

According to a recent AC Nielsen Retail Study, the Tanduay brand is now the highest selling brand in the Philippines with a market share of 34 percent. Its brands have a large following in the Visayas and Mindanao markets where it outsells competitors by three to one, the listed company said.

Tanduay Holdings is currently exploring export opportunities in new foreign markets including the United States. It is in the process of developing a new premium product and identifying distribution channels.

Tanduay Holdings recently raised P1.68 billion from a secondary offering that hiked its public ownership to the minimum level required by the local bourse. Proceeds of the share sale will partly finance the P2-billion expansion of the company’s production capacity and improve cost efficiency.

Tanduay Holdings shares fell 3 centavos or 0.72 percent to P4.15 each on Wednesday from P4.18 apiece on Tuesday.