Emperador chair Andrew Tan (third from left) visits Bodegas Fundador in Jerez, Spain with son Kevin (second from left) and Emperador president Winston Co CONTRIBUTED PHOTO
Tycoon Andrew Tan-led liquor firm Emperador Inc. grew its second quarter net profit by 24 percent year-on-year to P1.9 billion due to belt-tightening measures implemented amid the ongoing coronavirus (COVID-19) pandemic.
This brought Emperador’s net profit for the first semester to P3.3 billion, up by 2 percent year-on-year, despite slower consumer spending and the liquor bans that gnawed on its Philippine business starting mid-March, when the government locked key regions to prevent the COVID-19 contagion.
Emperador’s second quarter revenues rose by 4 percent year-on-year to almost P11 billion, bringing first-half revenues to P21.5 billion which stood flat compared to the year-ago level.
“Indeed, this is a very positive development during a complex year where external factors put huge pressure on some aspects of our business and open opportunity for others. On one side, consumption of spirits has been restricted in countries with liquor bans, with closure of on-trade channels (such as bars, restaurants, hotels), and a slump in global air travel,” Emperador president Winston Co said in a press statement on Monday.
“On another, business has been resilient in countries without liquor restrictions as consumers sought out our brands in the off-premise and e-commerce channels. By taking advantage of the buoyant grocery and convenience markets, our international business has delivered better-than-expected performance,” he said.
Six-month operating expenses contracted by 11 percent year-on-year to P3.2 billion as the lockdown and travel bans curbed its spending, particularly in the second quarter. Salaries and wages, advertising and promotions, travel and transportation, representation and taxes went down.
“We took the opportunity to manage costs and this helped our bottomline. The company is mitigating risks and capturing opportunities. We are continuing to grow internationally while fighting to widen our leadership in the Philippines,” Co said.
“Although, we are in good shape, we need to keep pushing as we continue to face unprecedented and very challenging times. Emperador remains strong and resilient, and our global footprint will allow us to emerge stronger and better from this experience,” he added.
Emperador owns Emperador Distillers Inc., Scotch whisky-maker Whyte and Mackay Group, and Bodegas Fundador in Spain.