Tequila maker Becle quadruples net profit in third quarter on peso’s slump

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MEXICO CITY (Reuters) -Mexico’s Becle, the world’s largest tequila producer, more than quadrupled its net profit in the third quarter, it said on Wednesday, boosted by favorable foreign exchange-rate dynamics.

Net profit reached 896.11 million pesos ($45.51 million), while revenues ticked up nearly 4% from a year earlier to total 10.95 billion pesos.

The Mexican peso was 13% weaker versus the U.S. dollar at the end of September 2024 compared to a year earlier, when the peso’s strength diluted foreign revenues for many Mexican firms including Becle.

“Despite (…) challenges, our sales have improved thanks to premiumization efforts and favorable exchange-rate effects, which have boosted profitability and mitigated the industry slowdown in key markets,” Becle executives said in a filing to Mexico’s main stock exchange.

Net sales in the U.S. and Canada – which make up 60% of Becle’s sales – jumped nearly 11% year-over-year, though volumes slipped some 3%. The lower volume was on the ready-to-drink and non-alcoholic beverage categories.

In Becle’s home market of Mexico – which brings in around a quarter of sales – both sales and volumes sank some 15%.

Becle has been shifting its products into premium price ranges, a strategy it says helped it hold and even increase its share in some markets last year despite slowing demand for spirits.

The distiller makes the bulk of its income from tequilas but also produces a range of spirits such as Creyente mezcal, Stranahan’s whiskey, Kraken rum and Boodles gin.

($1 = 19.6921 Mexican pesos at end-September)

(Reporting by Kylie Madry; Editing by Anthony Esposito)