Mexico City, Mexico, July 27, 2023 — BECLE, S.A.B. de C.V. (“Cuervo”, “Becle” or the “Company”) (BMV: CUERVO) today announced financial results for the second quarter ended June 30, 2023.
All figures in this release are derived from the Company’s interim consolidated financial statements as of June 30, 2023, and for the six-month period then ended, which are prepared in accordance with International Financial Reporting Standard (IFRS).
Second quarter 2023 highlights
- Volume decreased 0.7% to 7.0 million nine-liter cases;
- Net sales increased 7.0% in constant currency on a like-for-like basis (-2.4% reported);
- Gross profit decreased 5.3% to P$5,625 million pesos. Gross margin was 50.8%, a decrease of 1.6 percentage points year over year;
- EBITDA decreased 18.2% to P$1,917 million pesos. EBITDA margin was 17.3%, a decrease of 3.4 percentage points year over year;
- Consolidated net income decreased 5.5% to P$1,332 million pesos. Net margin was 12.0%, a decrease of 0.4 percentage points year over year and;
- Earnings per share (“EPS”) was P$0.37 pesos.
All abovementioned increases and decreases have been determined in comparison to the corresponding period in the preceding year.
Management commentary
“The prevailing theme throughout this year has been the pressure on profitability, primarily driven by exchange rate appreciation, input cost inflation and region mix headwinds. Despite these difficulties, we are proud to report that our premiumization strategy has provided some relief, as we have seen robust growth in our premium tequila and whiskey segments, outperforming the overall industry. As we enter the second half of the year, we are encouraged by the momentum we have built thus far. While we acknowledge the ongoing challenges, we remain confident in our ability to navigate these headwinds effectively by monitoring market conditions and closely following consumer trends.”
Second Quarter 2023 Unaudited Financial Results Conference Call and Webcast Details
Date: Friday, July 28th, 2023
Time: 9:00 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/slides?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.
