MANILA, Philippines - Lower revenues dragged the earnings of Emperador Inc., the hard liquor unit of property tycoon Andrew L. Tan, in the first half of the year.
In a regulatory filing, Emperador said its net income dropped 3.47 percent to P3.06 billion in the six-month period from P3.17 billion a year ago.
“Revenues totaled P13.25 billion this year from P13.99 billion a year ago primarily due to decrease in other revenues,” Emperador said. Other revenues that include interest earned from short-term placements sank by more than half to P325.84 million from P801.04 million.
Costs and expenses eased three percent to P9.48 billion from P9.81 billion due to improved cost of sales.
“While cost of sales improved this year, other operating expenses expanded by 10 percent due to salary increases, rent escalation and freight out,” Emperador said.
Emperador, the top selling liquor maker in the Philippines with a dominant 50 percent share, records a turnover of around 1.1 bottles everyday. It targets to double its profits to nearly P12 billion by 2017 from P5.8 billion last year through the expansion of local and international operations.
The listed company is behind brands Emperador, Generoso and Emperador Light brandies and a line of flavored alcoholic beverages called The Bar.
Emperador, the world’s largest brandy producer, sold 33 million cases last year, cornering almost 20 percent of the global brandy market.
Emperador is part of Tan’s Alliance Global Group Inc., which is also into property (Megaworld Group), fastfood (McDonald’s franchise operator Golden Arches Development Corp.) and hotels and casino (Travellers International Hotel Group Inc.). In May, Emperador took over the spirits business of the world’s biggest premium drinks group. It bought Whyte & Mackay for $724.24 million, its largest acquisition to date.
The liquor firm earlier invested a total of P5.8 billion in vineyards, distilleries and bodegas in Spain with the acquisition of Bodega San Bruno S.A.