ANDREW L. TAN-LED brandy and whisky producer Emperador, Inc. said it is monitoring global market risks as new US trade policies threaten to weigh on its whisky segment, already facing headwinds.
“(We’re) keeping a close eye on developments in US tariffs and their effect on global market dynamics,” Emperador said in a regulatory filing on Monday.
Emperador said it will also continue to pursue its premiumization strategy for the brandy portfolio.
As of April 9, US President Donald J. Trump suspended the implementation of higher reciprocal tariffs for 90 days. However, the 125% tariff on China, as well as the baseline 10% rate, remains in effect.
Emperador issued the statement as it reported a 27.4% decline in net profit for 2024 to P6.32 billion, driven by lower revenue.
Revenue dropped by 6.1% to P61.65 billion due to weakened consumer demand amid economic headwinds.
Gross profit fell by 11.2% to P18.78 billion, weighed down by higher costs of raw materials, dry goods, and an unfavorable product mix.
“Headwinds persisted in 2024, slowing down growth in revenue and net profit,” Emperador said.
The brandy segment recorded a 51.2% decline in net profit to P1.81 billion as revenue fell by 9% to P36.39 billion, reflecting weak demand and a shift in consumer preference toward bottom-shelf products.
Meanwhile, the whisky segment posted a 9.6% drop in net profit to P4.51 billion as revenue slipped by 1.6% to P25.26 billion.
“Net profit was down because of interest rate and taxes,” Emperador said.
At the local bourse on Monday, Emperador shares declined by 0.47%, or six centavos, to close at P12.62 apiece. – Revin Mikhael D. Ochave
