Emperador sets revenue record in 2022

April 13, 2023


Emperador [EMI 21.00 1.1%] [link], Andrew Tan’s whiskey and brandy conglomerate, teased that its FY22 revenues were up 12% to P62.8 billion on “strong demand for its whisky and brandy products around the world”.

EMI said that its whiskey segment grew by 18%, and its brandy segment grew by 9%.

FY22 net income was at P10.2 billion, which implies a Q4 performance of P2.8 billion in profit off of P21.6 billion in revenue, for a net margin of 12.9%.


Q4 is usually a strong quarter for EMI and this year was no exception, but the company’s net profitability was noticeably dragged in the second half of the year, which EMI attributes to “disruptions in global logistics and high inflation rates.”

It’s fairly easy to see this play out in the rise and fall of EMI’s quarterly net margin (net income divided by revenue): Q1 at 18%, Q2 at 21.7%, Q3 at 13%, and Q4 at 13%.

When EMI crushes it on the topline (sales) and underperforms on the bottomline (net income), it makes you realize that all of the challenges that EMI listed were basically related to input costs.

It didn’t really have a problem making and selling product.

It had a problem making and selling product as cheaply in H2 as it did in H1. I really want to see the full FY22 report to get a better idea for how inflation is hitting this business and how it might be vulnerable to it going forward.

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