Emperador profit up 12%

Tycoon Andrew Tan-led Emperador Inc., the world’s largest brandy company, grew its net profit by 12.2 percent to P6.96 billion last year, as the acquisition of Scottish whisky maker Whyte & Mackay boosted revenues.

Total revenue grew by 36.4 percent to P43.64 billion last year on the back of Whyte and Mackay full-year results, which were consolidated during the year, even as Emperador experienced soft volume locally, the company said in a regulatory filing yesterday.

Emperador booked its highest quarterly net income in the fourth quarter of 2015 at P2.26 billion, up 38 percent year-on-year.

“The fourth quarter of 2015 also marked a significant milestone in Emperador’s history as an agreement with Beam Suntory Inc. was reached to buy Fundador—Philippines’ best-selling premium brandy and an iconic brand for more than 150 years. The purchase also included other Spanish assets like Terry Centenario, Spain’s number one selling brandy; Tres Cepas, the No. 1 brandy in Equatorial Guinea; and Harveys, the No. 1 selling sherry wine in the United Kingdom. The turnover of the Spanish assets recently occurred early this month,” Emperador chair Andrew Tan said.

Emperador Inc. president Winston Co said: “This recent development truly marks an epoch in Emperador’s history. The long-term potential of our brandy business is more compelling than ever. We have become even more global.”

In 2015, total costs and expenses went up by 47.2 percent to P35.19 primarily due to the operations of Whyte & Mackay.

Gross profit was up by 23.8 percent to P13.68 billion last year. Emperador’s gross profit rate for 2015 hit 39 percent, up from 37 percent a year ago, which was attributed to cost efficiencies. Whyte & Mackay had a relatively low gross margin, which was at 19.7 percent in 2015.

Emperador is majority-owned by Alliance Global Group Inc.