Becle, Tequila Manufacturer, Sees Profits Plummet Due to Decline in US and Canada Sales

Mexico's Becle, the world's largest tequila producer, reported a 21% decrease in fourth-quarter profit compared to the previous year due to a notable drop in sales and volumes in the United States and Canada.

Cuervo, known for its tequila sales but also offering spirits like Creyente mezcal, Stranahan's whiskey, Kraken rum, and Boodles gin, revealed a net profit of 1.55 billion pesos ($74.3 million), surpassing LSEG analysts' expectations of 1.28 billion pesos. However, revenue reached only 12.9 billion pesos, falling short of analysts' projections of 13.62 billion pesos.

Becle stated that its sales in the U.S. and Canada, measured in foreign-exchange neutral terms, declined by approximately 25% in the quarter, with volumes in the region dropping by nearly 20%.

Concerning potential U.S. tariffs on Mexican products, the tequila producer warned that any trade agreement modifications or alterations in U.S. foreign policy could impact imports and exports with Mexico, potentially harming the company.

(Note: $1 = 20.8829 pesos at end-December)