Insider Spotlight
Tanduay’s strong earnings growth shows that profitability is being driven not just by higher sales volumes, but by better pricing power and tighter cost control—key advantages for consumer businesses operating in a highly competitive environment.
By the numbers
LT Group’s consolidated attributable income rose to P30.98 billion, up 7 percent from P28.92 billion a year earlier. Tanduay alone delivered P3.12 billion in net income, surging 45 percent from P2.15 billion and boosting its contribution to group earnings to 10 percent from 7 percent.
Revenue growth was modest with Tanduay sales inching up to P34 billion from P33.85 billion. Profitability improved sharply as cost of sales fell to P28.12 billion, while operating expenses declined to P2.02 billion.
Gross margin expanded to 17 percent from 15 percent, reflecting higher selling prices and efficiency gains.
Between the lines
The earnings mix signals improving quality of income. Tanduay’s profit jump was not driven by one-off gains but by structural improvements—lower input costs, disciplined spending, and stronger pricing.
“Tanduay’s continued growth reflects its strength as a brand and the trust of our consumers. Achieving six consecutive years of record profits also shows the efficiency of our teams across the organization and their focus on delivering quality products for Tanduay’s increasing consumer base,” Lucio Tan III, LTG president and COO and Tanduay president and CEO, said in a press statement on April 15, 2026.
Market context
Tanduay strengthened domestic dominance, raising market share to 39.5 percent from 34.2 percent, with strong positions in Visayas and Mindanao.
What’s next
Management is betting on international expansion to sustain growth, targeting wider global distribution and premiumization opportunities.
“As we build on the momentum of the previous year, we will keep strengthening Tanduay’s presence locally and globally,” Tan added. —Vanessa Hidalgo | Ed: Corrie S. Narisma
