Emperador’s H1 profit up 6.6% to P3.26B

TYCOON Andrew Tan-led liquor manufacturer Emperador Inc. grew first semester net profit by 6.6 percent year-on-year to P3.26 billion as the acquisition of iconic Scottish liquor firm Whyte and Mackay Group (WMG) boosted revenues.

For the second quarter alone, net profit surged by 38.7 percent year-on-year to P1.86 billion, Emperador disclosed to the Philippine Stock Exchange on Thursday.

Six-month revenues went up by 38.3 percent year-on-year to P18.32 billion. For the second quarter alone, revenues surged by 69.8 percent year-on-year to P9.43 billion.

The company said WMG, which was acquired at end-October 2014, beefed up this year’s results.

“Domestic sales of Emperador slowed down during the interim period this year but picked up in the second quarter, when sales escalated year-on-year,” the company said, adding that sales were expected to pick up further in the coming quarters.
 Gross profit margin for the semester eased to 32.5 percent this year versus 34.9 percent a year ago. The company said Scotch whisky had a relatively low gross margin which in turn pinched on gross margins. For domestic products, however, the company said gross margin of domestic improved due to favorable cost efficiencies.

Emperador’s cash flow as measured by earnings before interest expense, tax, depreciation and amortization (EBITDA) amounted to P4.79 billion equivalent to 26.1 percent of revenues.

Total assets amounted to P69.4 billion as of end-June 30, down by 30.3 percent year-on-year primarily due to repayment of debts associated with the WMG acquisition.

“The group is strongly liquid with current assets exceeding current liabilities 2.46 times by the end of the interim period. Working capital or liquidity was sourced internally from operations,” the company said.