Emperador Inc., the liquor unit of tycoon Andrew Tan, said net income climbed 11 percent in 2016 to P7.7 billion from P7 billion in 2015 despite a drop in revenues, as the company achieved higher margins brought about by cost efficiency measures.
Emperador said in a disclosure to the stock exchange revenues reached P41 billion last year. It did not provide comparative figure for 2015, but previous announcement pegged the 2015 revenues at P43.6 billion.
“Driven by high-margin brandy and whisky products, we have been able to sustain our earnings growth. Our earnings growth per annum from 2011 to 2016 is 27 percent,” Emperador president Winston Co said.
“We also managed to realize our highest quarterly earnings in the fourth quarter of 2016, amounting to almost P2.8 billion and reflecting an increase of 23 percent over the fourth quarter of 2015,” he said.
Co said flagship brand Emperador Brandy would soon be sold in the US through California-based G.K. Skaggs.
“With market penetration in 51 countries today, Emperador Brandy has evolved into a global brand. We believe that our export business will grow over time. And with the acquisition of Fundador last year, our brandy business is stronger than ever before,” Co said.
Emperador owns Emperador Distillers Inc., Scotch whisky maker Whyte and Mackay Group and Bodegas Fundador in Spain.
The liquor company has been expanding its portfolio overseas since 2014 via acquisitions. The most recent deal was the purchase of Domecq brandies and wines of Pernod Ricard in Mexico in December.
The deal, which is subject to customary conditions including clearance by the Mexican Anti-Trust authorities, will further strengthen the company’s position as the world’s largest brandy company.
It will provide the company access to the brandy market in Latin America, particularly Mexico where the Domecq brandies take half of the entire brandy market.
The acquisition came a year after Emperador bought Beam Suntory’s brandy and sherry business in a deal valued at 275 million euros ($292 million) and scotch whiskey manufacturer Whyte and Mackay in 2014.
Emperador was dropped from the 30-company Philippine Stock Exchange index following the recomposition implemented by the local bourse.