In the quarter, the operational flow de Cuervo grew 43.7% to 2,343 million pesos, while the net profit consolidated increased 58% to 1,410 million pesos, compared to 893 million pesos in the second quarter of 2021, according to the company’s financial statements.
“Despite continued supply chain constraints across the industry, tequila growth was strong across our family of brands. Although the global environment continues to be volatile, with a difficult macro and inflationary context, we continue to anticipate favorable trends in our portfolio and in our geographic regions as a result of the upturns in the consumption centers, the resilience in the downstream channel and our continued premiumization efforts,” the company said.
By region, the segment Rest of the world (which covers markets outside of Mexico, the United States and Canada) was the one that grew the most, with a 68.8% rise in sales. The billing in Mexico grew up 64.4%mainly due to premiumization efforts and price increases of the firm’s brands.
In United States and Canada, sales remained stable year over year; however, it remained the region with the largest share of Becle’s total sales.
By volume of sales (by beverage cases), the market that showed the greatest growth was also the Rest of the World, with an increase of 74.8%. Mexico posted 45% growth, offsetting a 7.6% drop in the United States and Canada, impacted by supply chain disruptions and a high comparison base in beverages Ready-to-Drink (RTD).
Jose Cuervo remains the preferred brand with a 17.8% increase in net sales compared to the same period in 2021, and represented 35.4% of the company’s total net sales in the second quarter.
The net sales of the brands of ‘Other Tequilas‘ increased 42.0% and represented 33.6% of total net sales. The marks of ‘Other Spirits‘ represented 18.2% of sales and increased 8% compared to the second quarter of last year.
The net sales of ‘non-alcoholic beverages and others‘ represented 3.4% of total net sales and increased 18.6% compared to the same period of the previous year. RTD net sales represented 9.4% of total net sales and decreased 11.6% compared to the same period of the prior year.
Roberto Solano and Brian Rodríguez, Monex analysts, consider that Cuervo presented better results than expected, and highlighted the increase in sales volume, despite the situation and with the operating and exchange conditions of the period.
“The key volume scenario could improve gradually, given a greater reactivation of consumption supported by a social reopening. It should be noted that although there is a change in the consumption of alcoholic beverages, the consumption scenario would seem to normalize in the year. It will be good to confirm the consumption trend in the face of a higher inflation rate, but so far the issuer has been resilient,” they said in an analysis.