Cuervo parent Becle drops 2023 sales guidance after Q1 results
2023.04.28 13:00
© Reuters. FILE PHOTO: Bottles of Jose Cuervo Tequila rest on a shelf in Mexico City, Mexico, February 8, 2017. Picture taken February 8, 2017. REUTERS/Edgard Garrido
MEXICO CITY (Reuters) -Mexican distiller Becle, parent company of the popular Jose Cuervo tequila brand, dropped its forecasts for sales growth in 2023 to high single digits following its first quarter results, an executive said during an earnings call Friday.
Becle executives had previously said in February said they expected total sales to grow by “high single digits to low teens” this year.
When asked by analysts about the revision to the lower end of the range, Becle said that they wanted to proceed with caution.
“We just wanted to be cautious on the performance for the rest of year… on an FX neutral basis, knowing what we already know about the first quarter,” an executive said.
Becle posted a nearly 10% slump in first-quarter net profit this week as price increases failed to cushion negative currency exchange effects and high inflation.
The company also said on Friday it would be launching a share buy-back program of up to 2 billion pesos ($111.16 million) at a shareholder meeting later today, as well as a proposed cash dividend payment of 0.49128 pesos per share.
($1 = 17.9925 Mexican pesos)
