Emperador profit up 3% amid global slowdown
Liquor conglomerate Emperador Inc. recorded a 3.1-percent rise in its first-semester earnings to P3.94 billion, a nearly flat finish because of lingering industry challenges, particularly in the whisky segment.
In a regulatory filing on Monday, the company led by tycoon Andrew Tan said its top line had declined by 2 percent to P28.2 billion, citing “global industry slowdown.”
“A generally soft demand in the global beverage alcohol industry is still persisting, highlighted by the shifting spending habits and consumption patterns of consumers,” Emperador said in its financial statement.
It added that high inflation also put pressure on consumers’ disposable income, leading to a “growing sensitivity to price and promotional activities.”
Brandy remained Emeprador’s main revenue driver, contributing P18.5 billion to the top line. This was up by 11 percent, led by the flagship Emperador brand, along with Fundador, which delivered double-digit growth.
Despite ongoing tariff tensions, Emperador stressed that it had expanded sales overseas—especially in Africa, Canada and European countries for its Spanish brands—and in the United States for its Mexican brands. This likewise drove the brandy business’ 80-percent net profit surge to P3.13 billion.
In January, Emperador took over 60 percent of Mexican mezcal maker Loz Danzantes SA de CV, marking its first venture into the mezcal category.
Mezcal is a distilled alcoholic beverage made from any type of agave plant. This is to distinguish it from tequila, which can only be made from blue Weber agave.
Meanwhile, the Scotch whisky segment saw P9.7 billion in revenues and other income, representing an 18-percent dip as the industry remained weak in most markets worldwide, Emperador said.
