Tanduay net income surges 92% to P1.1B

Tanduay Distillers Inc. grew its net profit last year by 92 percent to P1.1 billion on the back of higher selling prices alongside a modest increase in volume.

In a disclosure to the Philippine Stock Exchange Wednesday, TDI’s publicly listed parent firm Tanduay Holdings inc. said the rum-maker posted P12.3 billion in revenues last year, or an increase of 8.8 percent year on year.

Higher revenues last year were fueled by a 1.4-percent rise in volume and a 7.4-percent increase in average selling prices.

Sales volume growth of 1.4 percent was relatively slower than the previous year’s 7.5-percent growth and the average expansion of 8 percent in the last eight years. Apart from the comparative year 2010 being an extraordinary year due to the presidential elections, sales performance in 2011 was affected by the slower growth in the domestic economy, which expanded only 3.7 percent in 2011 compared with the previous year’s 7.3 percent.

Tanduay recently raised P1.68 billion from a public offering of shares that also widened its public float to meet the requirement for continuing listing on the local stock market. Proceeds will be used to expand production capacity and improve cost efficiency.—Doris C. Dumlao