THE Keepers Holdings, Inc. recorded a 98.8% increase in its net income for the second quarter to P403.05 million on the back of higher net sales, the Lucio L. Co-led firm said in a regulatory filing on Tuesday.
“The strong rebound is due to the jump in sales on the back of the gradual reopening of the economy in the second quarter which allowed the company to intensify marketing and promotional activities,” The Keepers President Jose Paulino L. Santamarina said.
The Keepers was previously a shell company under the corporate name Da Vinci Capital Holdings, Inc.
During the quarter, its net sales rose 86.8% to P2.54 billion while its cost of goods sold climbed 89.8% to P1.85 billion.
For the first half, The Keepers posted a 56.8% increase in its net income to P650.68 million.
Consolidated net sales for the six-month period rose 34.8% to P4.30 billion. Its brandy segment, which accounted for 78.1% of total sales volume, posted a 58.6% sales growth and was led by the flagship brand Alfonso.
Cost of goods sold for the period increased 33.3% to P3.16 billion from P2.37 billion a year ago.
According to Mr. Santamarina, other factors that contributed to the company’s performance were a favorable sales mix and the implementation of cost-saving measures. He said The Keepers currently holds a 74% volume market share.
“While we remain cautious of pandemic-related developments, we are optimistic for the business prospects for the second semester as we are seeing a very encouraging trend with our current sales under the brandy segment already surpassing pre-pandemic levels,” Mr. Santamarina said.
Some of the brands distributed by the company include Alfonso, Johnnie Walker, Jose Cuervo, Jim Beam and Jinro. It owns three major players in the Philippine liquor, wine and specialty beverage distribution segments, which are Montosco, Inc., Meritus Prime Distributions, Inc. and Premier Wines and Spirits, Inc.
Recently, The Keepers announced that it filed a registration statement with the Securities and Exchange Commission (SEC) for the conduct of a follow-on offering that is expected to raise as much as P7.5 billion.
Funds from the follow-on offering will be used for the expansion of the company’s liquor, wine, and specialty beverage distribution operations. — Revin Mikhael D. Ochave
