Spirits-maker Emperador nets P4.9B on cost-cutting measures

Globalizing liquor-maker Emperador Inc. posted a 4.7 percent year-on-year growth in nine-month net profit to P4.9 billion as higher margins from cost efficiency measures made up for the slack in revenues.

Revenues fell by 4.2 percent year-on-year to P27.9 billion during the nine-month period, attributed to the termination of a distribution contract for its Scotch whisky business last year.

Net margin, however, improved to 4.7 percent in the nine-month period from 3 percent in the same period last year, a regulatory filing on Thursday showed.

“Higher margins have enabled us to sustain a high level of profitability that’s underpinned by our brandy and whisky products. We have a compellingly diversified product portfolio that encompasses both domestic and foreign markets,” Emperador president Winston Co said in a statement.

“We expect better sales in the last quarter of this year compared to previous quarters on the back of increased consumer spending resulting from the holiday season. With an unrivalled portfolio of quality brandy and whisky products—both local and foreign brands—we are best positioned in the market to benefit from this increased consumer spending,” he added.

Expenses for the January to September period eased by around 5.4 percent year-on-year to P21.95 billion.

The Scotch whisky segment reported lower expenditures due to timing and phasing strategies. The brandy segment, on the other hand, increased expenses, particularly in the advertising and promotional campaigns for Bodegas Fundador.

Emperador is now the world’s largest brandy company and owner of Scotch whisky brands Whyte and Mackay as well as other brands led by the iconic Fundador. The company said its Scotch whisky labels, led by Dalmore and Jura, were also driving offshore growth in the US, Latin America, Europe and other parts of Asia —Doris Dumlao-Abadilla