Mexican spirits giant Becle saw profits plummet more than a fifth in its fourth quarter as it faced major dips in sales and volumes in North America.
In its fourth quarter ended 31 December, the group recorded a 21.3% drop in net income compared to the year prior at 1.5bn pesos ($73.4m). Like-for-like net income grew 19.1% in the period on a constant currency basis.
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The Gran Centenario distiller also saw its full-year 2024 net income dip 16.3% to approximately 4bn pesos. Like-for-like, the figure grew 42%.
Net sales in its fourth quarter dropped 2% and 10.5% on a constant currency basis to 12.9bn pesos, while gross profit grew 0.7%, but the like-for-like figure dropped 11.9% in constant currency terms. EBITDA was up 11% on 2023, but on a like-for-like basis it dropped 9% to 2.7bn pesos.
In a statement accompanying the results, Becle’s management said that it was facing “an industry landscape shaped by evolving market conditions” as it moved into 2025.
Group volumes were also down 8.4% in its 4Q period year on year at 7.3 million nine-litre cases.
In the full-year, they slumped 6.2% to 25.4 million nine-litres cases, driven by “a double-digit drop in the RTD category” in the US and Canada, “where market saturation and competition from smaller format presentations posed challenges”.
The company’s Jose Cuervo brand also faced “distributor-level destocking efforts” in the 12 months and a boost in “promotional activity from lower-end brands”, the business said.
In terms of regions, the US and Canada booked the largest drop both in volume and sales in the quarter. Net sales dropped 14% and 24.7% on a constant currency basis to 6.4bn pesos. Volumes in the region meanwhile declined almost 20% to 3.4 million nine-litre cases, attributed to “destocking efforts at the distributor level to ensure better shipment and depletion alignment for 2025”.
Volume dips in Becle’s US and Canada market were “partially offset”, by 19.7% volume growth in the group’s Rest of the World region, which hit around 1.4 million nine-litre cases.
In its full-year however, Becle saw volumes drop across its three main markets: US and Canada, Mexico, and Rest of the World. Mexico recorded the largest dip of 9.3% to 6.8 million nine-litre cases.
Speaking on its ambitions, the Three Olives Vodka brand owner said its “primary goal” was “to stabilise and build on last year’s market share gains”, and that it planned to ” focus on aligning shipments with depletions, sustaining premiumisation efforts, and strengthening operational resilience”.
The company added that it was forecasting “modest” growth, and that it was “committed to optimising performance through strategic execution, leveraging opportunities, and staying agile in the face of new challenges and consumer trends”.
