PHILIPPINE liquor giant Emperador on Tuesday (Aug 6) reported a fall in first-half net profit to 3.8 billion pesos (S$87 million), compared to 4.7 billion pesos in the corresponding year-ago period.
Revenue for the first half of the year was down about 7.9 per cent to 28.6 billion pesos, from 31.1 billion pesos in the prior year.
Brandy revenue fell about 10.3 per cent year on year to 16.7 billion pesos, while whisky revenue posted a 4.4 per cent year-on-year decrease to 11.9 billion pesos.
Second-quarter net profit posted a 19 per cent quarter-on-quarter increase to 2.1 billion pesos. Revenue for the second quarter rose 18.3 per cent on the quarter to 15.5 billion pesos.
The company, which is dual-listed on the Philippine Stock Exchange and the Singapore Exchange, said that second-quarter growth showed returning consumer confidence amid a high interest rate environment, inflation and geopolitical uncertainty.
It added that the Philippine market remained challenging as value-seeking consumers looked to competitively priced products. In response to market conditions, the company said it was “pivoting towards a more competitive stance”.
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It, however, noted that its long-term strategy of offering premium products remained “compelling”.
President of Emperador Winston Co said: “Once global economies improve and consumer demand for premium and luxury products returns, our performance will see new heights.”
The company is also expanding its Dalmore distillery, which will double its current capacity. Expansion works are expected to be completed by the end of this year.
At the same time, its warehouse capacities will also be increased to accommodate more products from the larger distillery.
Additionally, Emperador plans to expand its maturation complex in Invergordon Distillery. The site will double its footprint to 92 hectares with additional additional warehouses for whisky ageing. Once completed, the project will house an additional 1.5 million casks.
The global spirits conglomerate owns brands such as The Dalmore, Jura and Tamnavulin, which are among the top 15 single malts by volume, it noted.
Shares of Emperador remained flat at S$0.425, as at the mid-day trading break.
