LISTED global brandy and whiskey company Emperador, Inc. reported a 13% decline in its second-quarter attributable net profit, falling to P2.1 billion from P2.41 billion a year earlier amid market challenges.
Second-quarter revenue reached P15.5 billion, up by 18.3% compared to the previous quarter, Emperador said in a regulatory filing on Tuesday.
Emperador noted that its second-quarter net profit was 19% higher compared to the previous quarter.
For the first half, Emperador saw a 19.2% decline in its attributable net profit to P3.8 billion from P4.7 billion last year.
January-to-June revenue fell by 8% to P28.6 billion from P31.11 billion in 2023.
“The Philippine market remains challenging, reflecting the global situation. The market is inundated with cheap products as consumers seek value. The company is pivoting towards a more competitive stance. However, we believe that in the long term, the premiumization strategy remains compelling,” the company said.
“Results are improving quarter on quarter as the year progresses, with improving markets in Asia, Europe, and Latin America. There are signs that consumer confidence is returning globally, evidenced by higher revenues versus the previous quarter amidst challenges of high interest rates, inflation, and geopolitical uncertainty,” it added.
The company said its whiskey segment performed better than the industry across various markets, with its single malt portfolio being one of the few growing categories.
Meanwhile, Emperador is confident in its growth prospects with the expansion of The Dalmore distillery to be completed before year-end, which will double the current capacity.
The company is also expanding its warehouses to accommodate the aging of liquids from the expanded Dalmore distillery.
“The fundamentals of the company are intact and the long-term trajectory is still on track. Once global economies improve and consumer demand for premium and luxury products returns, our performance will see new heights. The company continues to strategically invest in the business for the future,” Emperador President Winston S. Co said.
Emperador’s brand portfolio consists of brands such as Fundador Brandy, The Dalmore, Fettercairn, Jura, and Tamnavulin single malt Scotch whiskeys. The products are available in over 100 countries.
On Tuesday, Emperador shares fell by 0.11% or two centavos to P18.58 per share. — Revin Mikhael D. Ochave
