EMPERADOR Inc. said profit in the first half of the year dropped 19 percent to P3.8 billion from P4.7 billion last year.
Revenues declined 6 percent to P28.6 billion from P30.4 billion.
In the second quarter, profit was down by 12.5 percent to P2.1 billion from P2.4 billion a year ago. Revenues grew by 2.64 percent to P15.5 billion from P15.1 billion last year.
The company said despite the declines, “results are improving quarter on quarter as the year progresses with improving markets in Asia, Europe, and Latin America.”
“There are signs that consumer confidence is returning globally evidenced by higher revenues versus the previous quarter amidst challenges of high interest rates, inflation, and geopolitical uncertainty,” it added.
In the Philippines, the company said the market remains inundated with cheap products as consumers seek for value.
“The company is pivoting towards a more competitive stance. However, we believe that in the long-term, the premiumization strategy remains compelling,” it said.
Emperador said its whisky segment continues to perform better than the industry in many markets.
“Single malt remains a bright spot in the total alcohol beverage industry as it is one of the few growing categories. The company’s single malt portfolio with brands such as The Dalmore, Jura, and Tamnavulin, which are among the top 15 single malts by volume globally according to industry reports, is well-positioned to withstand headwinds,” Emperador said.
The expansion of the Dalmore distillery which will double current capacity will be completed before the end of the year.
Winston Co, Emperador president, said the company’s fundamentals remain intact and its long-term trajectory is on track.
“Once global economies improve and consumer demand for premium and luxury products returns, our performance will see new heights. The company continues to strategically invest in the business for the future,” he said.
