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| Potential Impact of this News | NEGATIVE on the stock price |
| Company | Emperador Inc. |
| Stock Code | EMI |
| Long-term Recommendation on the Stock | Hold |
| 1-Year Target Price | PHP 16.29 |
Emperador Inc., the brandy and whisky unit of tycoon Andrew Tan’s Alliance Global Group, registered a 19% drop in attributable net income to P3.8 billion in the first semester of 2024 from the P4.7 billion earned in the same period last year.
In a disclosure to the Philippine Stock Exchange (PSE), the firm said attributable net profit for the second quarter of 2024 declined 12.5% to P2.1 billion from P2.4 billion in the same quarter last year, but was up 19% from the first quarter.
Revenues and net income dip compared to last year…
First half revenues dipped six percent to P28.6 billion from P30.4 billion in the same period last year while improving slightly to P15.5 billion in the second quarter of 2024 from P15.1 billion in the same period last year and 18.3 percent higher from the first quarter.
“Results are improving quarter on quarter as the year progresses with improving markets in Asia, Europe, and Latin America,” said the global liquor conglomerate.
It noted that “there are signs that consumer confidence is returning globally evidenced by higher revenues versus the previous quarter amidst challenges of high interest rates, inflation, and geopolitical uncertainty.”
… but Emperador says business remains resilient
Emperador said its business remains resilient due to its diversified portfolio in whisky and brandy, which covers numerous price points, and its wide distribution, which includes over 100 markets.
The Philippine market remains challenging reflecting the global situation and the market is inundated with cheap products as consumers seek for value.
“The company is pivoting towards a more competitive stance. However, we believe that in the long-term, the premiumization strategy remains compelling,” the firm said.
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