Emperador Inc., tycoon Andrew Tan’s global liquor conglomerate, remains cautiously optimistic for the remainder of 2026 after it managed to grow its net profit in the first quarter despite the many market challenges and uncertainties it faces.

The firm said in a disclosure to the Philippine Stock Exchange (PSE) on Wednesday, May 20, that its confidence is supported by strong fundamentals, strategic investments, and continued efforts to enhance operational resilience across its businesses.

Emperador noted that the global operating environment during the first quarter remained challenging due to geopolitical conflicts, disruptions in fuel supply, elevated energy prices, and continued uncertainties affecting international trade and consumer markets.

However, the firm said its balanced business structure and prudent management strategies enabled it to sustain growth momentum and improve profitability.

Emperador reported resilient financial performance for the first three months of 2026, with net income improving by three percent to ₱1.9 billion from the ₱1.85 billion earned in the same period last year, while revenues inched up to ₱13.3 billion from ₱13.2 billion.

Attributable net profit grew by 4.5 percent year-on-year on the back of higher sales and margins, reflecting disciplined cost management, a favorable product mix, and continued focus on operational excellence across business units.

“Our first-quarter performance demonstrates the resilience of our businesses and the strength of our diversified portfolio,” said Emperador President and Chief Executive Officer (CEO) Glenn Manlapaz.

He noted that, “Despite ongoing geopolitical tensions, supply chain disruptions, fuel price volatility, inflationary pressures, and broader macroeconomic headwinds, we remained focused on execution, efficiency, and delivering value to stakeholders.”

Brandy and whisky sales increased by six percent in the first quarter of 2026 compared to the same period last year, supported by sustained consumer demand, operational efficiencies, and steady contributions from both Philippine and global operations.

The group’s domestic brandy segment maintained stable growth amid evolving market conditions, while its international business continued to benefit from broader geographic diversification and expanding market presence.

Emperador has further reduced its capital expenditures (capex) to ₱2.4 billion this year from the ₱4 billion allotted last year and from ₱8 billion in 2023, but it expects stronger earnings.

The company told stock analysts that this year’s capex will be used for the upgrading of production, warehousing, and distribution facilities, while more than half will be allocated to the whisky segment for building maturation sites and other facility improvements.

Emperador said its brandy business returned to growth last year, with net income expanding by nine percent to ₱1.98 billion from ₱1.8 billion in 2024 as margins improved due to a better product mix and stabilized raw material costs.

However, its whisky business reported a 58-percent drop in net income to ₱1.89 billion last year because the rare and aged whisky segment has yet to recover, slowing whisky performance.

“We are selling higher volume of affordable to premium whiskies, but revenues are low because rare and aged have not recovered. We see 2025 as a re-base year, 2026 will be better despite the Iran war,” Emperador said. - James A. Loyola