Becle, S.A.B. de C.V. Reports Fourth Quarter and Full Year 2023 Unaudited Financial Results

Mexico City, Mexico, February 22^nd, 2024 / — BECLE, S.A.B. de C.V. (“Cuervo”, “Becle” or the “Company”) (BMV: CUERVO) announced its financial results today for the fourth quarter and full year ended December 31^st, 2023.

All figures in this release are derived from the Company’s interim consolidated financial statements as of December 31^st, 2023, and for the three and twelve-month periods ended on the same date, which are prepared in accordance with International Financial Reporting Standards (IFRS).

Fourth Quarter 2023 highlights

• Volume increased 0.2% on a pro forma basis, excluding the one-off inventory sale effect of the discontinuation of Playamar RTD in 4Q22 (-2.9% reported);
• Net sales increased 3.6% in constant currency on a like-for-like basis (-4.6% reported);
• Gross profit decreased 12.7% to P$6,930 million pesos. Gross margin was 52.6%, a decrease of 4.9 percentage points year over year;
• EBITDA decreased 2.4% to P$2,436 million pesos. EBITDA margin was 18.5%, an increase of 0.4 percentage points year over year;
• Consolidated net income increased 40.6% to P$1,963 million pesos. Net margin was 14.9%, an increase of 4.8 percentage points year over year and;
• Earnings per share (“EPS”) was P$0.55 pesos.

Full Year 2023 highlights

• Volume decreased 1.4% to 27.1 million nine-liter cases;
• Net sales increased 6.2% in constant currency on a like-for-like basis (-3.0% reported);
• Gross profit decreased 10.4% to P$22,480 million pesos. Gross margin was 50.7%, a decrease of 4.2 percentage points year over year;
• EBITDA decreased 25.7% to P$7,312 million pesos. EBITDA margin was 16.5%, a decrease of 5.0 percentage points year over year;
• Consolidated net income decreased 19.5% to P$4,734 million pesos. Net margin was 10.7%, a decrease of 2.2 percentage points year over year and;
• EPS was P$1.32 pesos.

All abovementioned increases and decreases are in comparison to the corresponding period from last year.

Management commentary

“Acknowledging the prevailing market challenges, we remain optimistic about our growth trajectory. The slowdown in consumer demand for spirits across several markets indicates a return to historical trends after two years of exponential growth. However, the enduring resilience and continued demand for our brands underline our confidence in regaining momentum as we progress through 2024. We also anticipate cost tailwinds for the year, deriving from supply chain pressures easing and lower input costs, resulting in margin expansion opportunity. Our strategic focus on premiumization has enabled us to either maintain or increase our market share in most key markets, positioning us favorably to navigate and overcome current setbacks.”

Fourth Quarter and Full Year 2023 Unaudited Financial Results Conference Call and Webcast Details

Date: Friday, February 23^rd, 2024

Time: 10:00 a.m. Mexico City Time (11:00 a.m. E.T.)

Participants:  Juan Domingo Beckmann (CEO), Fernando Suárez (CFO)

Dial-in:

Mexico: +52 55 1168 9973

Brazil: +55 61 2017 1549

USA: +1 718 866 4614

Canada: +1 587 855 1318

United Kingdom: +44 203 984 9844

France: +33 1758 50 878

Germany: +49 30 25 555 323

Conference ID: 623996

Webcast:

https://mm.closir.com/slideslo?id=623996 or www.becle.com.mx.

Miranda Newswire – Full Press Release: Download PDF

Contact:

Investor Relations:

Bryan Carlson

bcarlson@cuervo.com.mx

Jose Ignacio Aldama

valdamad@cuervo.com.mx

Investor Relations

ir@cuervo.com.mx

Corporate Affairs:

Alfredo López alopez@cuervo.com.mx

About Becle

Becle is a globally renowned company in the spirits industry and the world’s largest producer of tequila. Its extraordinary portfolio of over 30 spirits brands, some of them owned, some of them agency brands distributed only in Mexico, has been developed throughout the years to participate in key categories with high growth potential, serving the world’s most important alcoholic beverage markets and delivering on key consumer preferences and tendencies.

Becle’s portfolio strength is based on the profound legacy of its iconic internally developed brands such as Jose Cuervo®, combined with complementary acquisitions such as Three Olives®, Hangar 1®, Stranahan’s®, Bushmills®, Pendleton®, Boodles® and Proper No. Twelve®, as well as a relentless focus on innovation that over the years has created renowned brands such as 1800®, Maestro Dobel®, Centenario®, Kraken®, Jose Cuervo® Margaritas and B:oost®. Becle’s brands are sold and distributed in more than 85 countries.

EBITDA

EBITDA is a measure used in the Company’s financial analysis that is not recognized under IFRS but is calculated from amounts that derive from the Company’s financial statements. We calculate EBITDA as net income plus depreciation and amortization, income tax expense, and interest expense, less interest income, plus foreign exchange gain (loss).

EBITDA is not an IFRS measure of liquidity or performance, nor is EBITDA a recognized financial measure under IFRS. We believe that EBITDA can be useful to facilitate comparisons of operating performance between periods on a combined basis, but these metrics may be calculated differently by other issuers. EBITDA should not be construed as an alternative to (i) net income as an indicator of the Company’s operating performance or (ii) cash flow from operating activities as a measure of the Company’s liquidity.

Disclaimer

This press release contains certain forward-looking statements which are based on Becle’s current expectations and observations. Actual results obtained may vary significantly from these estimates. The information related to future performance contained in this press release should be read jointly with the risks included in the “Risk Factors” section of the Annual Report filed with the Comisión Nacional Bancaria y de Valores (Mexican National Banking and Securities Commission). This information, as well as future statements made by Becle or by any of its legal representatives, either in writing or verbally, may vary significantly from the actual results obtained. These forward-looking statements speak only as of the date on which they are made, and no assurance can be made as to the actual results obtained. Becle undertakes no obligation and does not intend to update or review any such forward-looking statements, whether as a result of new information, future developments or other related events.