Becle's Tequila Sales Dip Amidst North American Decline

Mexico's Becle, the leading tequila producer, reported a 21% drop in fourth-quarter profit due to reduced sales and volumes in the U.S. and Canada. Despite surpassing profit estimates with 1.55 billion pesos, revenue fell short at 12.9 billion pesos. Economic policies may further impact imports and exports.

Mexico's Becle, recognized as the world's largest tequila producer, experienced a notable decrease in profits for the fourth quarter, down 21% from the previous year. This downturn is largely attributed to a significant drop in sales and volumes in the United States and Canada.

Cuervo, a key player under Becle's umbrella and primarily known for its tequila, also delves into producing various spirits like Creyente mezcal, Stranahan's whiskey, Kraken rum, and Boodles gin. Despite the challenges, the company exceeded LSEG analysts' profit projections, reporting a net profit of 1.55 billion pesos ($74.3 million), although revenue still fell short at 12.9 billion pesos against the predicted 13.62 billion pesos.

Sales in the U.S. and Canada, when adjusted for foreign exchange, plummeted by approximately 25% in this quarter, while volumes also saw a near 20% decrease, according to Becle. The company expressed concerns about potential U.S. tariffs on Mexican goods, warning that shifts in trade agreements or foreign policy could negatively impact their import-export operations.

(With inputs from agencies.)