Emperador Inc., the largest global brandy company that owns the Emperador and Fundador brands, is increasing its capital expenditure budget by 50 percent to P1.5 billion to further expand its global footprint.
“Last year, at the height of the pandemic, we held back on our capital expenditure so we spent around P1 billion,” said Emperador Inc. President Winston Co.
He noted that, “With the vaccinations underway, we expect some easing of pandemic restrictions this year and onwards with increased air travel, and overall, some form of normalcy.” “As a global company, we constantly adapt to changing consumer behavior especially in a challenging and difficult environment,” Co said.
He addd that, “Consumers around the world react differently by region or country depending on how liquor is positioned or perceived as either an essential or non-essential product.” In the Americas, particularly the U.S., and in Europe, particularly the UK, where liquor is an essential product, Co said sales are doing very well.
“In the US
, we grew more than 20 percent while in the UK, we grew more than 30 percent. In China, we more than doubled our sales. In contrast, there have been liquor restrictions in certain areas in the Philippines over an extended period of time,” he said.
Meanwhile, Co noted that, “e-commerce is increasing its role in our business all over the world.” Emperador reported a 43 percent spike in attributable net income to P2.1 billion in the first quarter of 2021 as revenues rose 13 percent to P12.1 billion.
The firm said it has been able to navigate through the ongoing challenges brought about by the pandemic because of its “global footprint across over 100 countries in six continents, iconic and well-diversified brandy and whisky portfolio, and strong managements all over the world.” The first quarter of 2021 saw a continued robust performance of Emperador’s global business as sales in most markets are returning. Leading the growth are the Americas, UK and the rest of Europe, and Asia, particularly China.
“Our business is growing on multiple levels. We are happy to report a record first-quarter income of P2.1 billion, coming from a record year in 2020,” Co said.
He added that, “Both brandy and whisky segments have seen continuous robust growth. The current environment has shifted consumer behavior differently in various markets. The company has managed to adapt and grow with consumer and economic movements.”
“We are optimistic that the gains we have achieved will lead the company to a new phase of growth. We expect the situation to improve and return to some level of normalcy towards the end of the year,” said Co.