In January, LTDI’s consolidated sales amounted to P1.3 billion or 15 percent more than the P1.1 billion revenues a year ago. Aside from the traditional liquor products (gin and rum), sales also streamed from its bottled water, fruit juice and health drink product lines.
The company’s operating income likewise grew by 15 percent to P266 million although higher operating expenses pulled down its net earnings by eight percent from P120 million to P111 million.
Sales of JellyAce, a gelatin-based snack product, was particularly exceptional as its volume surged by a record 53 percent following the full operation of Sugarland’s new plant in Mandaluyong City.
Sugarland, the country’s leading juice maker, was fully acquired by LTDI and SMC on a 51-49 percent basis in May last year. Its flagship brands are Eight O’Clock juices and JellyAce, both dominant products in their respective categories.
There have been rumors that SMC plans to spin-off the Sugarland unit into a separate entity to handle the non-liquor business of LTDI which will retain and concentrate on the hard liquor lines led by the Ginebra San Miguel gin, Anejo rum, Gilbey’s Gin and Bravo rum.
Last year, LTDI was among the major drivers that contributed to SMC’s growth. Full year revenues reached P14.2 billion, 34 percent more than the previous year with net income expanding at the same rate to P1.35 billion.
LTDI has also increased its bottled water business with the purchase of the Wilkins brand from Metro Pacific Corp. in late 1999, integrating with its Viva and First Mineral water lineup to corner a sizable share in the growing bottled water industry. – Conrado Diaz Jr.