Stock Commentary

The Keepers H1 net income up 39.5% to P981 million

Merkado Barkada
The Keepers H1 net income up 39.5% to P981 million

Lucio Co’s liquor distributor, The Keepers [KEEPR 1.23 5.13%] [link], teased a huge bump in H1 profitability to P981 million (+39.5%), driven by “robust sales performance from all categories”.

KEEPR noted specifically the recovery of the “on-premise” channel, and the continued (but gradual) recovery of the travel retail market, as key components of its H1 performance.

KEEPR’s H1 net sales were up 27.4%, with sales of its flagship segment, brandy, up over 17%.

KEEPR said that it saw a 23% increase in sales volume, despite “some” price increases implemented throughout its product catalog.


While demand for alcohol doesn’t go away during a pandemic, the ability to enjoy it openly and freely with friends in social settings certainly can, as we saw throughout the Duterte lockdowns and various shades of movement restrictions over the past couple of years.

Now that the new administration seems to be focused on opening the economy up, social plays like KEEPR are starting to unlock some of that pent-up demand.

From a business perspective, it’s hard to argue with anything that KEEPR has done; they’ve managed to increase sales volume while increasing prices, and they’ve grown sales across all segments of the business.

There are only a couple of variables that I’d be watching for KEEPR; (1) how quickly (or slowly) it seems like international travel is returning to pre-COVID levels, and (2) whether or not there are any long-lasting or permanent changes to how people consume alcohol in social settings.

I know that my group of friends has certainly toned it down considerably, but maybe we’re just old or whatever.

Is the next generation of young adults and professionals, blunted by years of remote school and remote work, going to have the same appetite for KEEPR’s products?

Or will the “ceiling” of their consumption be limited by habits and behaviors that were normalized during the lockdowns? 



Merkado Barkada is a free daily newsletter on the PSE, investing and business in the Philippines. You can subscribe to the newsletter or follow on Twitter to receive the full daily updates.
Merkado Barkada's opinions are provided for informational purposes only, and should not be considered a recommendation to buy or sell any particular stock. These daily articles are not updated with new information, so each investor must do his or her own due diligence before trading, as the facts and figures in each particular article may have changed.



  • Latest
Are you sure you want to log out?

Philstar.com is one of the most vibrant, opinionated, discerning communities of readers on cyberspace. With your meaningful insights, help shape the stories that can shape the country. Sign up now!

or sign in with