Emperador nets P7B

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

Total revenues grew by 36.4 percent to P43.64 billion in 2015 as Whyte & Mackay’s full year results were consolidated this year. On the other hand, Emperador experienced soft volume locally during the year, the company said in a regulatory filing.

Emperador made the highest quarterly net income in the fourth quarter of 2015, amounting to P2.26 billion, showing a 38 percent year-on-year increase

“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 number one brandy in Equatorial Guinea; and Harveys, the number one 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 billion primarily due to the operations of Whyte & Mackay that were consolidated beginning November 2014.

Gross profit improved by 23.8 percent to P13.68 billion last year. Emperador’s gross profit rate for 2015 was up at 39 percent as compared to 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.