Lotty Dotty | Lucio Tan III Leads Tanduay to 14% Net Income Growth in 2022 | Tanduay Distillers, Inc. continued its growth momentum under President and COO Lucio Tan III, who assumed the leadership of the company in 2019. In 2022, Tanduay’s consolidated net income reached P1.42 billion, 14% higher than the previous year, with consolidated revenues at P31.6 billion, a 26% increase from 2021.
“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,” said Tan.
Tanduay’s liquor volumes went up by 16% in 2022. It continued its dominance in the Visayas and Mindanao, where every three out of four liquor drinker chose Tanduay products. The Company also grew its share in the overall domestic market.
While consolidated cost of sales was up by 28% at P28 billion due to higher excise taxes and manufacturing costs, Tanduay still ended 2022 with a 12% growth in its gross profit at P3.6 billion.
Ethanol volumes were flat, but had higher selling prices last year due to the increased costs of molasses and sugar.
Tanduay’s international business, meanwhile, was up by 16% in 2022, with its Asia-Pacific and Middle East markets recording a 293% growth. As of this writing, the brand has entered the markets of 16 states in the U.S., with plans to enter three more this year. In Asia, it is available in China, the United Arab Emirates, Singapore, and Qatar.
Under Tan, the brand began its expansion in Europe. It is now present in Belgium, the Netherlands, Luxembourg, Germany, Poland, the United Kingdom, Austria, Czech Republic, Georgia and Armenia.
While the Philippine liquor industry expanded by 6% in 2022, inflation may affect its growth this year as demand for non-basic commodities like liquor might slow 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.