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Cuervo FY sales boosted by volume growth
Mexico-based drinks group and Jose Cuervo maker Becle saw its net sales for 2017 increase by 6.4%, with volume growth in all regions.
Jose Cuervo maker Becle saw its net sales for the 2017 fiscal year increase by 6.4%
In the fiscal year ending 31 December 2017, the Tequila-maker’s operating profits increased by 19.8% to M$6,736 million pesos while net profits increased to M$25,958 million pesos.
Net sales in the US and Canada increased 2.6% compared with the previous year, attributed to price increases and favourable sales mix, partially offset by the unfavourable effect of foreign exchange.
Mexico net sales increased by 15.3% as a result of both volume growth and higher average net selling prices per case.
Jose Cuervo Tequila saw a net sales increase of 6.4% in the full-year. The Tequila brand represented 36.6% of total net sales for 2017.
The Company’s other Tequila brands represented 22.7% of total net sales and increased by 18.6% compared to the previous year.
Other spirits brands, including Irish whiskey brand Bushmills, represented 20.1% of total net sales in the period and reported an increase of 2.2%.
Net sales of ready-to-drink represented 8.4% of total net sales and reported an increase of 3%.
During 2017, the company invested M$1,066 million pesos in capital expenditures.
“Tequila growth was robust across our family of brands and we continue to enjoy accelerated growth across our premium brands that is driving higher average net sales per case, both in Tequila and across our other spirits brands,” the company said in a statement.
“We celebrated many accomplishments during 2017, including our initial public offering and our most recently announced acquisition of the Pendleton Whisky brand assets.
“We have built a global spirits business with an attractive growth profile and the financial assets to further expand our growth portfolio of brands.”
The results follow Becle’s acquisition of Canadian whisky brand Pendleton for US$205m, first announced in December last year.