Liquor manufacturer Emperador Inc. said Monday its revenues and net income fell in 2024 from a year ago amid the weakness in consumer demand across markets.
Emperador said net income in 2024 declined 27.4 percent to P6.32 billion from a year ago, while sales slipped 6.1 percent to P61.64 billion
“Net profit declined as a result of lower revenues coupled with continued investment in the business,” Emperador said.
Gross profit also went down 11.2 percent year-on-year to P18.78 billion. Margins weakened largely due to higher cost of raw materials, dry goods and product mix.
Revenues from its brandy business went down 9 percent to P36.39 billion, on weak demand as consumers down traded to bottom-shelf products. Net profit from the segment slumped 51.2 percent to P1.81 billion due to lower revenues and continued expenses.
The group’s whisky business was more resilient, dipped by only 1.6 percent to P25.25 billion, while net profit declined 9.6 percent to P4.5 billion due to interest rate and taxes.
Emperador said that this year, it is “keeping a close eye on developments on US tariffs, and its effect on global market dynamics” as this could have a significant impact on the group’s international business.
Emperador said environment will continue to be challenging, particularly for its whiskey business, given the new trade policies from the US.
US President Donald Trump earlier imposed reciprocal tariffs against trading partners, which could trigger a trade war. The liquor firm said, however, it is still expecting its brandy business to perform better this year than in 2024.
It expects higher margins as the company’s brandy business pivots to target low-priced segment, while pursuing “premiumization strategy”.
Emperador owns Emperador Brandy, the world’s best-selling brandy. Its portfolio of iconic brands also includes Fundador Brandy, The Dalmore, Fettercairn, Jura and Tamnavulin Single Malt Scotch whiskies.
The products are available in more than 100 countries.
The share price of Emperador declined 0.47 percent Monday to close at P12.62.