Mexican spirits maker Becle, the world’s largest tequila maker, saw its share price fall more than 15% on Thursday after reporting a deep drop in third-quarter profits, largely due to the devaluation of overseas earnings due to the strong economy. growth. pesos.
losses morning excluded about 23 billion pesos (about 1260 million dollars) from the market value Beklewhich produces famous Tequila Jose Cuervo.
stock market crash This left Becle’s share price at levels not seen since April 2020 and put the company on course for its worst session since its listing in February 2017.
The Mexican peso rose 14% against the dollar. for the 12 months ended Sept. 30, causing many Mexican companies to report lower profits as revenue earned abroad lost foreign currency value.
Becle’s peso-denominated profits fell across all regions and categories, but sales volumes outside the U.S. also declined, which the company attributed to economic challenges in Europe and Latin America that led to a slowdown in customer spending on liquor.
“This is Cuervo’s weakest profitability since the company’s IPO,” Santander analysts wrote in a note, adding that earnings fell significantly short of forecasts “across the board.”
Foreign currency profits accounted for more than three-quarters of Becle’s sales last year, according to Banco Santander.
Despite the difficult quarter, company executives said on the earnings call that Becle will continue its premiumization strategy to maintain and grow its market share.
Reuters
Source: Aristegui Noticias
Roy Brown is a renowned economist and author at The Nation View. He has a deep understanding of the global economy and its intricacies. He writes about a wide range of economic topics, including monetary policy, fiscal policy, international trade, and labor markets.
