Cuervo sees profits slump by nearly 50%

Just one month after listing on the Mexico stock market and raising US$934m from investors, Jose Cuervo’s parent company, Becle, has reported a near 50% slump in fourth quarter profits compared with last year.

Fourth quarter profits were US$30.5m compared with $59.2m in 2016, despite sales revenues soaring by 52% on Tuesday.

The world’s biggest Tequila producer, still majority owned by the Beckmann family, said that the profits crash was largely due to the ballooning cost of agave, which has risen by 84% since this time last year. Agave is a key ingredient in Tequila.

The February listing was heavily oversubscribed despite the threat by President Trump to slap a 20% import tax on Mexican products to pay for his mooted border wall. More than 60% of Cuervo’s sales are to the US and Canada.

Leave a Reply

Your email address will not be published. Required fields are marked *

Please note that comments are subject to our posting guidelines in accordance with the Defamation Act 2013. Posts containing swear words, discrimination, offensive language and libellous or defamatory comments will not be approved.

We encourage debate in the comments section and always welcome feedback, but if you spot something you don't think is right, we ask that you leave an accurate email address so we can get back to you if we need to.

Subscribe to our newsletters

The Global Riesling Masters 2018

View Results

Global Chardonnay Masters 2018

View Results

Click to view more