Jose Cuervo maker maintains annual guidance, upbeat on coming months
July 28, 2023 at 12:19 pm EDT
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MEXICO CITY (Reuters) - Mexican distiller Becle, the world's largest tequila producer, said on Friday that it maintained its guidance of annual sales in the high single digits on a constant currency basis, after a stronger peso ate into its earnings abroad.
Without the FX impact, Becle's gross margin would have expanded over the second quarter instead of shrinking, an executive said in an earnings call a day after it posted a net profit drop of 5%.
The company expects stronger results over the coming months, the executive said, which should enable the firm to meet its target, as well as benefits from lower prices for agave - the prickly plant used to make tequila - over the longer term.
(Reporting by Sarah Morland and Aida Pelaez-Fernandez; Editing by)
Becle SAB de CV is a Mexico-based company engaged in the beverages industry. The Company focuses on the production, bottling, trade and distribution of alcoholic and non-alcoholic beverages. Its offer includes various types of tequila distributed under own Jose Cuervo brand name, non-alcoholic drinks, ready-to-drink beverages, as well as other distilled alcohols distributed under third-party brand names, including Three Olives, Hangar 1, Stranahan's, Bushmills and Boodles. Its distribution chain comprises operations in the United States, Mexico and other countries. In addition, the Company is involved in the farming and processing of blue agave. The Company owns a number of subsidiaries, such as Tequila Cuervo la Rojena SA de CV, Casa Cuervo SA de CV and Azul Agricultra y Servicios SA de CV.
BECLE, S.A.B. DE C.V. 
