DESPITE a local liquor ban, brandy and whisky manufacturer Emperador, Inc. posted a 24% growth in profits during the second quarter due to the continued demand for its products overseas.
In a statement on Monday, the listed company said its attributable net income during the April-to-June period stood at P1.9 billion, lifting core earnings for the year-to-date period up 2% to P3.3 billion.
Its revenues climbed 4% to nearly P11 billion during the second quarter, bringing first-half revenues to P21.5 billion.
Its higher turnout during the three months was “better than expected,” as the bulk of the duration of the coronavirus-related lockdown was during the months of April and May.
The Philippine government implemented a liquor ban to match the strict lockdown.
“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,” Emperador President and CEO Winston S. Co said in the statement.
He said apart from the liquor ban, the consumption of spirits was stunted in countries where bars, restaurants and hotels had closed. But in other countries where regulations were more lax, customers were able to get Emperador products through e-commerce channels.
“By taking advantage of the buoyant grocery and convenience markets, our international business has delivered better-than-expected performance,” Mr. Co said.
Part of Emperador’s strategy is to keep its international expansion while managing costs to cushion its bottom line. “Emperador remains strong and resilient, and our global footprint will allow us to emerge stronger and better from this experience,” Mr. Co said.
Emperador is under Alliance Global Group, Inc., the holding firm of tycoon Andrew L. Tan, which also has interests in real estate, hotel and casino, and McDonald’s Philippines.
It owns Emperador Distillers, Inc.; Scotch whisky maker Whyte and Mackay Group; and Spain-based Bodegas Fundador.
Shares in Emperador at the stock exchange picked up five centavos or 0.55% to close at P9.09 each on Monday. — Denise A. Valdez