MEXICO CITY (Reuters) – Mexican distiller Becle, better known as the parent company of tequila brand Jose Cuervo, posted a 29.6% jump in third-quarter net profit Thursday, as it hiked prices and boosted sales of its premium brands.
Becle’s net profit rose to 1.71 billion pesos ($85.2 million), or 0.48 pesos per share, beating analysts’ consensus estimate of 0.36 pesos, according to Refinitiv.
Revenue for the company, which also manages brands like Stranahan’s whiskey and Kraken rum, climbed 20% from the year-ago period to 11.53 billion pesos, supported by strong sales in its home market and beyond.
Net sales in Mexico, one of its main markets by volume, increased 27% in the period, primarily due to successful efforts to encourage customers to trade up to higher-end brands, as well as year-over-year price increases.
Adjusted earnings before interest, tax, depreciation and amortization (EBITDA), an indicator of core earnings, rose 33% to 2.8 billion pesos.
“We were able to deliver strong results even as the quarter continues to be impacted by supply chain disruptions and inflationary cost pressures across the sector,” the firm said in a statement.
($1 = 20.1271 pesos at end of September)
(Reporting by Valentine Hilaire, Editing by Isabel Woodford, Christian Plumb and Cynthia Osterman)