Emperador earnings decline as high prices bite

MANILA  -Tycoon Andrew Tan-led liquor conglomerate Emperador Inc. booked lower profit during the first nine months of the year as rising costs blunted strong growth in the whiskey segment.

Emperador said net income from January to September this year slipped 5.6 percent to P6.78 billion while revenues grew 10 percent to P47.1 billion.

“The company continues to surge ahead in light of the challenging complexities in the world,” Emperador president Winston Co said in a statement on Monday.

“We have a compelling whisky portfolio driving the international business and a brandy segment driven by innovation and premiumization. Overall, for 2023, our company hopes to end the year with a strong performance,” he added.

During the nine-month period, Emperador said its international business “continued to experience double-digit growth owing to its sustained sales of single malt whiskies across different markets across the globe, particularly in Asia and North America.”

Brandy sales grew 4 percent to P27.8 billion, while scotch whisky sales expanded by 22 percent to P19.2 billion during the period, the company said in its latest quarterly report.

At the same time, Emperador booked a 13 percent increase in costs and expenses to P38.8 billion. This included a 54-percent jump in interest expenses to P1.13 billion.

Operating expenses during the period rose 43 percent to P7.6 billion due to more aggressive marketing, employee salaries as well as transport and freight costs, the filing showed.