Tequila lift for Becle as profit quadruples
The world’s largest Tequila producer has posted a fourfold increase in second-quarter profit, driven by favourable currency exchange movements despite weaker global demand.
Becle, owner of the Jose Cuervo brand, defied expectations with stronger-than-forecast earnings, even as volumes fell in nearly all markets outside Mexico.
Becle, parent company of the Jose Cuervo Tequila portfolio, reported net profit of 2 billion pesos (US$106.6 million) for the three months to the end of June, more than four times higher than the previous year and 11% above analysts’ consensus. Sales revenue rose to 11.5 billion pesos, up 2.8% on the same period last year but slightly below market forecasts.
The uplift in profits was primarily due to currency movements, with the Mexican peso having weakened by about 3% against the US dollar over the past year. Adjusting for that weaker peso, Becle’s profit rose by 22% while net sales were down 6%.
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Regional shifts in demand
The US and Canada, which account for almost 60% of Becle’s net sales, saw volumes fall 7% during the quarter, reflecting both softer consumer demand and Canadian retailers limiting US-related purchases. In contrast, volumes in Mexico, which represent around 25% of sales, grew by 7%.
Sales in the rest of the world fell 11% as high inventories continued to suppress demand. Becle said it was seeing early signs of improvement in some markets and was working toward a “better balance between shipments and depletions”.
Global Tequila market surges
Despite Becle’s softer volumes in North America, the US appetite for Tequila remains strong. According to the US Distilled Spirits Council, Tequila imports reached US$5.3 billion in 2024, up more than 14% year on year, surpassing the combined value of whiskey, gin, rum, brandy and vodka imports.
Trade outlook stable
Becle also noted that geopolitical risk remains in focus. While President Trump has threatened fresh tariffs on Mexican goods from August 1, US commerce secretary Howard Lutnick signalled that goods covered by the existing trade agreement with Mexico and Canada, including Tequila, would remain exempt.
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