Emperador Inc., the brandy and whisky unit of tycoon Andrew Tan’s Alliance Global Group, registered a 19 percent 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 percent to P2.1 billion from P2.4 billion in the same quarter last year but was up 19 percent from the first quarter. 

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.”

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.

Fundador is pushing forward its sherry cask collection, showcasing the century and a half old brand’s ability to contemporize and premiumize. 

The Fundador sherry cask has seen early successes in the markets it has recently entered, a promising indication for the brand’s future.

Emperador’s whisky segment continued to perform better than the industry in many markets. Single malt remains a bright spot in the total alcohol beverage industry as it is one of the few growing categories.

“The company’s single malt portfolio with brands such as The Dalmore, Jura, and Tamnavulin, which are among the top 15 single malts by volume globally according to industry reports, is well-positioned to withstand headwinds,” Emperador said.

The company said it is confident in the future of the business. The Dalmore distillery is being expanded to cater to future demand by doubling the current capacity of the distillery and will be completed before the end of this year. 

The company is also expanding its warehouses to accommodate aging of liquids from the expanded Dalmore distillery.

“The fundamentals of the company are intact and long-term trajectory is still on track. Once global economies improve and consumer demand for premium and luxury products returns, our performance will see new heights. The company continues to strategically invest in the business for the future,” Emperador Inc. President Winston Co said.

Emperador is a global spirits conglomerate that owns Emperador Brandy, the world’s best-selling brandy. Its portfolio of iconic brands also includes Fundador Brandy, The Dalmore, Fettercairn, Jura, and Tamnavulin Single Malt Scotch whiskies.