Philippines-based distiller Tanduay Holdings has posted a slight fall in third-quarter profits.

The company said yesterday (14 November) that earnings for the three-month period were hit by higher costs of production and packaging materials.

Net profit for the quarter to the end of September slipped slightly from the corresponding period last year (PHP140.5m) to PHP149.9m (US$2.7m). Net sales, meanwhile, were flat at PHP1.59bn from PHP1.56bn a year earlier, the company said. Costs and expenses were up by 5% year-on-year, reaching PHP1.42bn.

For the first nine months of 2005, however, Tanduay saw net profit leap by 55% to PHP582.2m, with net sales also increasing, by 13% to PHP5.3bn.

"The increase in net sales and net income is attributable to the 15% increase in average process due to better product mix and the 13% increase in selling prices," the company said.

In volume terms, sales for the nine-month period remained flat at 11.1m cases, as consumer demand was hit by high inflation rate in the Philippines.