Its scotch whiskey business Whyte & Mackay is now in the growth phase, while its recently-acquired brandy business in Mexico is expected to follow suit in 2019
MANILA, Philippines – Emperador Incorporated, the liquor arm of business tycoon Andrew Tan, expects its international liquor business to boost its revenues in the next few years, after its series of acquisitions overseas.
Emperador president Winston Co said after the company’s annual stockholders’ meeting on Monday, May 21, that its scotch whiskey business Whyte & Mackay is now in the growth phase, while its recently acquired brandy business in Mexico is seen to follow suit by 2019.
During the 1st quarter of 2018, Emperador’s scotch whiskey business accounted for 30% of total revenues, while its brandy business contributed to bulk of its sales at 70%.
“We are happy with the growth of Whyte & Mackay because its growth trajectory has been in line with our projection, and forecast for the brandy in Spain is also positive,” Co said.
“Significant part of revenue and margin moving forward will be coming from international,” he added. (READ: Emperador finalizes £430M acquisition of Whyte & Mackay)
The Emperador chief said he is also optimistic about the prospects of their domestic business as he banks on strong consumer spending.
“We are excited about the Philippines because there is [a] consumption story in the country. People are in spending mode,” Co said.
Pause in acquisitions
But Co said Emperador is taking a pause in its acquisition binge for this year, as it is still in the process of integrating its recently acquired Domecq brandies and wines of Pernod Ricard in Mexico.
“We have fully integrated our Whyte & Mackay in our operations and we are running quite smoothly and it is now [in the] growth phase,” Co said.
“But Mexico, we are still in the middle of integration and we expect this to be [in the] growth phase by next year. For now, we are happy with the trajectory of our international business,” he added.
Emperador saw its net income jump by 11% to P1.7 billion in the 1st quarter of the year, from P1.5 billion in the same period a year ago.
Its scotch whiskey revenues for the 1st 3 months of the year surged by 13% to P2.8 billion, mainly fueled by strong demand from Asia and the United Kingdom.
Revenues from the brandy business, including the Philippines’ Emperador and Spain’s Grupo Emperador, also increased by 6% to P7 billion in the 1st 3 months of the year, from P6.6 billion in the same period a year ago.