Tanduay Net Income Up 92% in 2011
Makati–(PHStocks)–Tanduay Holdings Inc. (PSE: TDY) announces that its wholly-owned subsidiary Tanduay Distillers Inc. (TDI) has reported an unaudited parent company net income for the year 2011 amounting to PhP1.1 billion, a 92% increase from 2010 figures. Revenues amounted to PhP12.3 billion, representing an increase of 8.8% from the previous year’s figure of PhP11.3 billion. The increase in revenue came from a 1.4% increase in volume and a 7.4% improvement in average selling prices.
The 1.4% sales volume growth for the year 2011 was relatively slower than last year’s growth figures of 7.5% and the average growth rate of the last five years of 8%. Apart from the year 2012 being an election year, sales performance in 2011 was also affected by the slowdown in the domestic economy, which grew by only 3.7% this year as against last year’s 7.3%.
The results of a recent AC Nielsen Retail Study showed that the TANDUAY brand is now the highest selling brand in the Philippines with a market share of 34%. The TANDUAY brand lineage includes the best-selling Tanduay Rhum Five Years, ESQ, Rhum 65, Superior, 1854 Rhum, and the latest additions – T5 Light and Extra Strong. The TANDUAY brands have a very large following in the Visayas and Mindanao markets where it outsells all competitors by three-to-one.
The Company recently raised PhP1.68 billion from a public offering of shares, which also raised the Company’s public ownership above the minimum statutory requirement. The funds generated from the exercise will be used to finance its ongoing projects with a total estimated cost of PhP2 billion. The projects aim to expand the capacity and improve cost efficiency.
