La Tondeña posts 21% revenue growth in Q3

Even as the country’s economy moved slower than expected, La Tondeña registered significant volume growth across its business during the third quarter, translating to a 21 percent increase in revenues. A strong recovery in its liquor businesses, combined with sustained revenue growth for bottled water and juice, drove the company’s good performance.

Consolidated net sales for the third quarter amounted to P4 billion, from P3.3 billion during the same period in 2000. Operating income improved by nine percent from P652 million to P713 million. Despite a 48-percent increase in interest costs, net income was still improved at P287 million, compared to P282 million last year.

Year-to-date revenues remain upbeat at P11.8 billion, up 15 percent from P10.3 billion. High interest costs, owing to higher rates and capital levels from the company’s acquisition of Sugarland, brought down net income to P949 million, 12 percent lower than last year.

Coming from a weak first semester, the company’s liquor business mounted a strong recovery during the quarter and outperformed last year’s strong base. Volumes increased by 13 percent as a result of favorable performance in North Philippines.

La Tondeña’s bottled water and juice businesses continued to register strong revenue growth. Providing impetus in the bottled water segment was a double-digit increase in PET volumes. With the recovery of the five-gallon segment during the third quarter, total year-to-date revenues improved by 15 percent. As of August, the company’s share of the bottled water market improved by four percentage points to 54 percent, from 50 percent in June last year.

In the juice segment, the rapid growth of Ponkana fueled revenue growth. Total revenues for the quarter increase by 17 percent translating to an 84-percent growth in year-to-date results.

During the investors briefing yesterday, LTDI president Arnaldo L. Africa disclosed that the company expects to complete its non-liquor spin-off by November. This transaction, he explained, is expected to result in significant benefits for La Tondeña, especially as it seeks, to pursue new avenues of growth for its liquor business.

La Tondeña’s board of directors earlier approved dividends of P0.375 for all common and preferred shareholders as of Nov. 19, 2001. Payment will coincide with the expected receipt of proceeds from the sale of the company’s non-liquor business in December.