Emperador Q3 net profit falls 52.2% to 981 million pesos

PHILIPPINE liquor giant Emperador’s net profit for the third quarter ended September fell 52.2 per cent to 981 million pesos (S$22.4 million), from 2.1 billion pesos in the previous corresponding period.

Revenue for Q3 was down 8.9 per cent on the year at 14.6 billion pesos, from 16 billion pesos.

This brings net profit for the nine-month period to 4.8 billion pesos, down 29.4 per cent from 6.8 billion pesos in the previous corresponding period. This translates to an earnings per share of 0.31 peso for the nine months, down from 0.43 peso in the same period last year.

Revenue in the first nine months also slipped 8.3 per cent year on year to 43.2 billion pesos.

The declines come as Emperador’s global spirits sector and global beverage alcohol markets face lower demand, as the cost of living rose amid rising inflation, said the group on Thursday (Nov 14).

Brandy revenue for the nine-month period fell 10 per cent on the year to 25 billion pesos, while whisky revenue posted a 5.7 per cent year-on-year decline to 18.2 billion pesos.

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Emperador noted that there was weakness in most global markets, including Spain, Mexico and the Philippines, as consumers shifted to affordable alternatives.

Industry slowdown in the Scotch whisky segment also continued across multiple markets worldwide, said the company, which is dual-listed on the Philippine Stock Exchange and the Singapore Exchange.

“The tough trading situation in China and in the US impacted the Scotch whisky industry sales in the Asia-Pacific and North American regions,” it added.

Shares of Emperador were trading flat at S$0.42 as at 3.54 pm on Thursday.

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