Emperador Inc., the liquor arm of tycoon Andrew Tan, expects the international liquor business to boost overall revenues in the coming months following a string of overseas acquisitions.
Emperador president Winston Co said in an interview following the annual stockholders’ meeting its scotch whiskey business under Whyte and Mackay, which it purchased in 2014, was now on a growth phase.
Co also said the brandy business in Mexico, which it acquired in 2017, was expected to be on the growth phase by 2019.
The group’s whiskey scotch business accounted for 30 percent of total revenues in the first quarter, while brandy business contributed 70 percent.
“We are happy with the growth of Whyte and Mackay because its growth trajectory has been in line with our projection and forecast for the brandy in Spain is also positive,” Co said.
“So overall, significant part of revenue and margin moving forward will be coming from international,” Co said.
Co said the company was also bullish on the prospects in the domestic market, given the country’s strong consumer spending.
“We are excited about the Philippines because there is consumption story in the country. People are in spending mode,” he said.
Meanwhile, Co said the company was taking a pause in terms of acquisitions this year as it was still in the process of integrating recently acquired Domecq brandies and Pernod Ricard wines in Mexico.
“We have fully integrated our Whyte and Mackay in our operations and we are running quite smoothly and it is now on growth phase. But Mexico, we are still in the middle of integration and we expect this to be on growth phase by next year,” Co said.
“But for now we are happy with the trajectory of our international business,” Co said.
Emperador booked an 11-percent growth in net income in the first quarter to P1.7 billion from P1.5 billion a year ago, on the back of an 8-percent rise in revenues to P9.7 billion from P9.0 billion.
Revenues from the scotch whisky business in the three-month period rose 13 percent to P2.8 billion, amid strong demand from Asia and the United Kingdom.
Revenues from the brandy business, which combined Philippines’ Emperador and Spain’s Grupo Emperador brands, also grew 6 percent in the first quarter to P7 billion from P6.6 billion registered a year earlier.