Brandy and whisky conglomerate Emperador Inc. booked lower earnings in the first six months amid cutthroat competition in the domestic market, but it hopes to bounce back once consumer confidence strengthens.
The company led by billionaire Andrew Tan on Tuesday said net profit in the January to June period had ended at P3.8 billion, representing a 19-percent decline from the same period last year. Revenues likewise fell by 7.7 percent to P28.6 billion.
Emperador said the Philippine market “remains challenging, reflecting the global situation.”
READ: Brandy maker Emperador takes shot at whisky to fuel growth
“The market is inundated with cheap products as consumers seek for value,” it added.Despite this, Emperador president Winston Co noted that their long-term growth goals were “still on track.”
“Once global economies improve and consumer demand for premium and luxury products returns, our performance will see new heights,” Co said in a statement.
Emperador noted that consumer confidence was “returning globally,” especially as revenues in the second quarter alone had climbed by 18.3 percent to P15.5 billion. Net profit during the period reached P2.1 billion, up by 19 percent versus the previous quarter.
Emperador, which used to be a purely brandy-focused firm, is betting on the whisky segment for growth this year amid a global market slowdown, describing single malt as a “bright spot in the total alcohol beverage industry.”
Earlier, the company said it would spend P6.5 billion this year to expand whisky operations under Scotland-based unit Whyte and Mackay by increasing the capacity of its Dalmore Distillery to meet the anticipated demand growth.
Dalmore is among the Emperador’s single malt brands, along with Jura and Tamnavulin.
Invergordon, another distillery in Scotland, will also expand. Emperador aims to double the footprint of this facility to 92 hectares to eventually house an additional 1.5 million casks. —Meg J. Adonis INQ