Restructured Tanduay seen as one of top PH conglomerates

By Miguel R. Camus, BusinessMirror

Posted at Aug 31 2012 07:56 AM | Updated as of Aug 31 2012 03:56 PM

MANILA, Philippines - Tanduay Holdings Inc.—which is being restructured into the new holding company for most of the assets of businessman Lucio Tan—could be one of the country’s biggest conglomerates in terms of earnings, new data disclosed to the stock exchange on Thursday showed.

Tanduay released an interim financial statement for the first half of 2012, which assumes that the ongoing restructuring program is completed, shedding some light on the new company’s earnings potential.

Based on the filing, Tanduay said it would have a first half net income of P3.6 billion, of which P3.2 billion is attributable to equity owners, while revenues stood at P59.2 billion.

No comparative figures were given. The hard liquor maker will join with Tan’s brewery, tobacco, real estate, airline and banking interests.

This compares with other consumer-oriented conglomerates like John Gokongwei-led JG Summit Holdings Inc., which also has airlines and real estate. JG Summit booked a profit of P7.47 billion in the first half on revenues of P47.69 billion.

Henry Sy-owned SM Investments Corp., which mainly is in retail, real estate and banking, posted P10.9 billion in profit in the first six months on revenues of P105.2 billion. Alliance Global Group Inc. of Andrew Tan, which has interesta in liquor, gaming, and real estate, had a net income of P5.7 billion in the first semester while sales hit P51.1 billion.

Tanduay’s filing also showed that the new holding company will have costs of sales amounting to P52 billion. Operating expenses are seen at P6.8 billion for the first half. Its assets during the period were valued at P236.5 billion while liabilities stood at P172.6 billion.

Tanduay said earlier that it plans to issue 3 billion new shares to support the asset consolidation. As part of its restructuring plan, the company will acquire unlisted companies Asia Brewery Inc. and Fortune Tobacco Corp. It will also acquire listed Eton Properties Philippines Inc., 49.84 percent of flag carrier Philippine Airlines and 50.9 percent of AirphilExpress, a budget carrier.

Tanduay shares rose 0.16 percent to P12.38 each on Thursday.