Emperador Inc., the spirits unit of the Alliance Global Group Inc., is tightening its belt on capital spending for second consecutive year even as it anticipates recovery in earnings performance.

The company told stock analysts that the brandy and whisky giant slashed its capital expenditure budget to ₱2.4 billion for 2026, a retreat from the ₱4 billion earmarked last year and the ₱8 billion spent in 2023.

More than half of this year’s budget is designated for the Emperador’s whisky segment, specifically for the construction of maturation sites and facility upgrades. The remainder will be utilized to modernize production, warehousing, and distribution infrastructure.

The reduction in spending comes as the company navigates a bifurcated recovery across its core spirits portfolios. Emperador reported that its brandy business returned to a growth trajectory last year, with net income rising nine percent to ₱1.98 billion from ₱1.8 billion in 2024.

Emperador attributed the gains to improved margins, a more favorable product mix, and the stabilization of raw material costs.

Conversely, the whisky division faced headwinds, reporting a 58 percent plunge in net income to ₱1.89 billion. The company noted that while volumes for affordable and premium whiskies remain robust, the high-margin “rare and aged” segment has yet to fully recover from global market shifts.

Emperador described 2025 as the “re-base year” and expressed optimism for a stronger 2026, despite broader geopolitical uncertainties such as the ongoing conflict in the Middle East.

In a move to optimize its debt profile, the company’s wholly owned subsidiary, Emperador International Ltd., is refinancing a €300 million loan through a new sustainability-linked facility. The deal is the first sustainability-linked loan for a Philippine food and beverage company.

The facility is guaranteed by the parent company and Emperador Distillers Inc., and is backed by a syndicate including Banco Bilbao Vizcaya Argentaria SA, Bank of China (Hong Kong) Ltd., and DBS Bank Ltd.

The loan terms are tied to specific environmental benchmarks, including the reduction of Scope 1 and Scope 2 greenhouse gas emission intensities and an increase in the use of renewable electricity. Winston S. Co, Emperador chairman, said the facility provides financial benefits while reinforcing the company’s commitment to sustainable operations.

Emperador, which operates manufacturing hubs in the Philippines, the United Kingdom, Spain, and Mexico, has been ramping up green investments to offset the energy-intensive nature of liquor production.

These projects include a bioenergy center and carbon capture facility in Invergordon, Scotland, and the installation of solar panels across its global manufacturing footprint.