Becle S.A.B. de C.V Reports Third Quarter 2023 Unaudited Financial Results

Mexico City, Mexico, October 25, 2023 — BECLE, S.A.B. de C.V. (“Cuervo”, “Becle” or the “Company”) (BMV: CUERVO) today announced financial results for the third quarter ended September 30, 2023.

All figures in this release are derived from the Company’s interim consolidated financial statements as of September 30, 2023, and for the nine-month period then ended, which are prepared in accordance with International Financial Reporting Standard (IFRS).

Third quarter 2023 highlights

• Volume decreased 4.5% to 6.5 million nine-liter cases;
• Net sales increased 4.3% in constant currency on a like-for-like basis (-8.5% reported);
• Gross profit decreased 18.7% to P$5,068 million pesos. Gross margin was 48.1%, a decrease of 6.0 percentage points year over year;
• EBITDA decreased 58.8% to P$1,159 million pesos. EBITDA margin was 11.0%, a decrease of 13.4 percentage points year over year;
• Consolidated net income decreased 88.0% to P$207 million pesos. Net margin was 2.0%, a decrease of 12.9 percentage point year over year and;
• Earnings per share (“EPS”) was P$0.06 pesos.

All abovementioned increases and decreases have been determined in comparison to the corresponding period in the preceding year.

Management commentary

“In the face of what is still a challenging business environment, characterized by the exchange rate appreciation and complex macroeconomic conditions, we are encouraged by our year-to-date performance. Our ongoing focus on premiumization and optimizing our product mix has enabled us to outperform the overall sector. The consistent demand for our key brands, alongside the enduring popularity of tequila, reinforces our confidence in our brands’ lasting value. Our core business has shown resilience and adaptability in the midst of evolving challenges.”

Third Quarter 2023 Unaudited Financial Results Conference Call and Webcast Details

Date: Thursday, October 26^th, 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.