Becle, S.A.B. de C.V. Reports Second Quarter 2019 Unaudited Financial Results

MEXICO CITY–(BUSINESS WIRE)–BECLE, S.A.B. de C.V. (“Cuervo”, “BECLE” or the “Company”) (BMV: CUERVO) today announced financial results for the quarter ended June 30, 2019.

All figures in this release are derived from the Interim Consolidated Financial Statements of the Company as of June 30, 2019 and for the three-month periods ended, and are prepared in accordance with International Accounting Standard 34 “Interim Financial Reporting” of the International Financial Reporting Standard (IFRS), which have been published in the Mexican Stock Exchange (BMV).

Second Quarter 2019 highlights

  • Volume increased 6.4% on an underlying basis to 5.6 million nine-liter cases;
  • Net sales increased 3.8% on an underlying basis to P$6,969 million pesos;
  • Gross profit decreased 13.3% to P$3,805 million pesos. Gross margin was 54.6%;
  • EBITDA decreased 22.2% to P$1,391 million pesos. EBITDA margin was 20.0% and;
  • Earnings per share were P$0.24.

All abovementioned increases and decreases have been determined in comparison to the corresponding period in the preceding year.

Management commentary

Becle delivered strong first half of the year top line results, generating 11% net sales growth on an underlying basis (+7% reported). Depletion trends have been strong during the first half of the year and our growth is outpacing the broader spirits and tequila categories. The Company remains well positioned in the global spirits industry, with significant capital and conservative financial leverage to execute our long-term growth strategy.

Second Quarter 2019 results

Volume by region 2Q19 (in 000s nine-liter cases)

Region

2Q19

2Q18 PF*

2Q18

(Var. % YoY) PF*

(Var.% YoY)

U.S. & Canada

3,496

3,433

3,603

1.8

%

-3.0

%

Mexico

1,529

1,309

1,312

16.8

%

16.5

%

Rest of the World

590

532

543

10.8

%

8.6

%

Total

5,615

5,274

5,459

6.4

%

2.9

%

* Pro forma for the non-renewal of the distribution agreement for the Cholula Food Company in April of this year. For comparison purposes only.

During the second quarter of 2019, total volume increased 6.4% on an underlying basis to 5.6 million nine-liter cases (+2.9% reported). The year-over-year growth reflected a 16.8% increase in Mexico on an underlying basis (+16.5% reported) driven by continued strong shipments of tequila and aggressive promotional activity, an 10.8% increase in the Rest of the World (RoW) region on an underlying basis (+8.6% reported), and a 1.8% growth in the U.S. and Canada on an underlying basis (-3.0% reported); driven by strong consumer take-away and depletion trends, led by continued strong growth of tequila.

Net sales by region 2Q19 (in MXN$ millions)

Region

2Q19

2Q18 PF*

2Q18

(Var. % YoY) PF*

(Var.% YoY)

U.S. & Canada

4,725

4,616

5,058

2.4

%

-6.6

%

Mexico

1,383

1,239

1,242

11.6

%

11.4

%

Rest of the World

861

862

878

-0.1

%

-1.9

%

Total

6,969

6,717

7,177

3.8

%

-2.9

%

* Pro forma for the non-renewal of the distribution agreement for the Cholula Food Company in April of this year and a base comparison effect resulting from the delay in billing of discounts in the U.S. from one of our large distributors that occurred during last year’s second quarter. For comparison purposes only.

Second quarter 2019 net sales increased 3.8% on an underlying basis to P$6,969 million pesos (-2.9% reported). Net sales in Mexico increased 11.6% on an underlying basis (+11.4% reported), primarily driven by the strong volume growth, partially offset by unfavorable sales mix. In the same period, U.S. and Canada net sales increased 2.4% on an underlying basis (-6.6% reported, primarily reflecting the non-renewal of the distribution agreement for the Cholula Food Company and a base comparison effect resulting from the delay in billing of discounts in the U.S. from one of our large distributors that occurred during last year’s second quarter). Net sales of the RoW region decreased by 0.1% on an underlying basis (-1.9% reported) when compared to the second quarter of 2018.

Volume by category 2Q19 (in 000s nine-liter cases)

Category

2Q19

2Q18 PF*

2Q18

(Var. % YoY) PF*

(Var.% YoY)

Jose Cuervo

1,794

1,647

1,647

8.9

%

8.9

%

Other Tequilas

762

706

706

8.1

%

8.1

%

Other Spirits

913

874

874

4.5

%

4.5

%

Non-Alcoholic and Other

1,080

1,051

1,235

2.7

%

-12.6

%

RTD

1,065

997

997

6.8

%

6.8

%

Total

5,615

5,274

5,459

6.4

%

2.9

%

* Pro forma for the non-renewal of the distribution agreement for the Cholula Food Company in April of this year. For comparison purposes only.

Volume of Jose Cuervo increased 8.9% compared to the same period in 2018 and represented 32.0% of total volume for the second quarter of 2019. The Company’s Other Tequila brands represented 13.6% of total volume, with volume increasing 8.1% compared to the prior year period. The Company’s Other Spirits brands represented 16.3% of total volume in the period and experienced a 4.5% increase in volume over the second quarter of 2018. Volume of Non-alcoholic and Other represented 19.2% of total volume and volume increased 2.7% on an underlying basis (-12.6% reported compared to the prior year period primarily driven by the non-renewal of the distribution agreement for the Cholula Food Company brand in April of this year). Volume of ready-to-drink (RTD) represented 19.0% of total volume and grew by 6.8% compared to the prior year period.

Net sales by category 2Q19 (in MXN$ millions)

Category

2Q19

2Q18 PF*

2Q18

(Var. % YoY) PF*

(Var.% YoY)

Jose Cuervo

2,674

2,543

2,601

5.2

%

2.8

%

Other Tequilas

1,599

1,470

1,486

8.8

%

7.6

%

Other Spirits

1,331

1,360

1,383

-2.1

%

-3.8

%

Non-alcoholic and other

500

517

861

-3.4

%

-42.0

%

RTD

865

827

846

4.6

%

2.2

%

Total

6,969

6,717

7,177

3.8

%

-2.9

%

* Pro forma for the non-renewal of the distribution agreement for the Cholula Food Company in April of this year and a base comparison effect resulting from the delay in billing of discounts in the U.S. from one of our large distributors that occurred during last year’s second quarter. For comparison purposes only.

Net sales of Jose Cuervo increased 5.2% on an underlying basis (+2.8% reported) compared to the same period in 2018 and represented 38.4% of total net sales for the second quarter of 2019. Net sales of the Company’s Other Tequila brands increased 8.8% on an underlying basis (+ 7.6% reported) compared to the prior year period and represented 22.9% of total net sales. The Company’s Other Spirits brands represented 19.1% of total net sales in the period and decreased 2.1% decrease in net sales on an underlying basis (-3.8% reported) compared to the second quarter of last year. Net sales of Non-alcoholic and Other represented 7.2% of total net sales and decreased 3.4% on an underlying basis (-42.0% reported compared to the prior year period reflecting the non-renewal of the distribution agreement for the Cholula Food Company and a base comparison effect resulting from the delay in billing of discounts in the U.S. from one of our large distributors that occurred during last year’s second quarter). Net sales of RTDs represented 12.4% of total net sales and increased 4.6% on an underlying basis (+2.2% reported) compared to the prior year period.

Gross profit during the second quarter of 2019 decreased 13.3% over the same period in 2018 to P$3,805 million pesos. Gross margin was 54.6% for the second quarter of 2019 compared to 61.1% for the second quarter of 2018. On a sequential basis, gross margin improved from 52.8% in the first quarter of 2019. The year-over-year decline in gross margin continues to reflect strong consumer demand for super premium tequilas, which has led to record high third-party agave prices, as well as lower production efficiencies due to industry-wide sourcing of younger agave plants, affecting our distilling efficiency.

Advertising, marketing and promotion (AMP) expenses decreased 6.9% to P$1,601 million pesos when compared to the second quarter of 2018. As a percentage of net sales, AMP decreased to 23.0% from 24.0% in the prior year period. This decrease reflects the planned timing of AMP spend relative to the prior year period.

Selling and administrative (SG&A) expenses increased 14.7% to P$724 million pesos when compared to the second quarter of 2018 mainly driven by a base effect of a reclassification of certain expenses into cost of goods sold during the same period of last year, with a neutral effect in operating profit. As a percentage of net sales, SG&A increased to 10.4% from 8.8% in the prior year period.

Operating profit during the second quarter of 2019 decreased 24.9% to P$1,247 million pesos compared to the same period last year. Operating margin decreased to 17.9% as compared to 23.1% in the prior year period, primarily reflecting higher third-party agave supply costs and increased SG&A.

EBITDA in the second quarter of 2019 decreased 22.2% to P$1,391 million pesos compared to the second quarter of 2018. EBITDA margin was 20.0% for the second quarter of 2019.

Net financial results were P$88 million pesos during the second quarter of 2019, mainly driven by net interest expense. On a year-over-year basis net financial results had a 455 million pesos drop as a result of the Mexican peso appreciation.

Consolidated net income in the second quarter of 2019 decreased 40.9% to P$858 million pesos, compared to P$1,451 million pesos in the prior year period. Net margin was 12.3% for the second quarter of 2019, compared to 20.2% in the second quarter of 2018. Earnings per share were P$0.24 in the second quarter of 2019, compared to P$0.40 in the same period of the prior year.

Financial position and cash flow

As of June 30, 2019, cash and equivalents were P$8,704 million pesos and total financial debt was P$9,545 million pesos. During the first half of 2019, net cash flow from operating activities was P$1,144 million pesos positive, and the Company used P$742 million pesos in net investing activities. Cash used in financing activities was P$3,447 million pesos for the first half of 2019.

IFRS 16: Leases

IFRS 16 was issued on January 2016 and replaces existing lease guidance, including IAS 17 Leases, IFRIC 4 Determining whether an Arrangement contains a Lease, SIC-15 Operating Leases – Incentives and SIC-27 Evaluating the Substance of Transactions Involving the Legal Form of a Lease.

IFRS 16 introduces a single, on-balance sheet lease accounting model for lessees. A lessee recognizes a right-of-use asset representing its right to use the underlying asset and a lease liability representing its obligation to make lease payments.

Subsequently, the lessee recognizes an amortization expense of the assets by right of use and an interest expense on the lease liabilities. There are recognition exemptions for short-term leases and leases of low-value items. Lessor accounting remains similar to the current standard – i.e. lessors continue to classify leases as finance or operating leases and only some disclosure requirements are added. For lessees, IFRS 16 also modifies its cash flows presentation related to leases, since cash flow outflows from operating activities are reduced and outflows of cash flows from financing activities increased.

The Company adopted IFRS 16 initially on January 1, 2019, using the modified retrospective approach. Therefore, the cumulative effect of adopting IFRS 16 was recognized as an adjustment to the opening balance (increase in assets and liabilities). As of January 1, 2019, with no restatement of comparative information.

Conference call

The Company plans to host a conference call for investors at 9:00 a.m. Mexico City Time (10:00 a.m. U.S. Eastern Time) today, Wednesday, July 24, 2019, to discuss the Company’s second quarter 2019 unaudited financial results. Interested parties may also listen to a simultaneous webcast of the conference call by logging onto the Company’s website at https://engage.vevent.com/rt/beclesadecvao~8966559 or www.becle.com.mx.

Second Quarter 2019 Unaudited Financial Results Conference Call and Webcast Details

 

Date:

Wednesday, July 24, 2019

 

Time:

9:00 a.m. Mexico City Time (10:00 a.m. EST)

 

Participants:

Juan Domingo Beckmann (CEO)

 

 

Fernando Suárez (CFO)

 

Dial-in:

 

 

 

Mexico Toll-free

01 800 926-9147

 

U.S. Toll-free

1-(877) 263-0329

 

Toll/International

1-(469) 473-3797

Conference ID:

8966559

 

Webcast: https://engage.vevent.com/rt/beclesadecvao~8966559 or www.becle.com.mx.

*Those participating via webcast will be unable to participate in live Q&A

About Becle

Becle is a globally renowned company in the spirits industry and the world’s largest producer of tequila. Its extraordinary portfolio of over 30 spirits brands, some of them owned, some of them agency brands distributed only in Mexico, has been developed throughout the years to participate in key categories with high growth potential, serving the world’s most important alcoholic beverage markets and attending key consumer preferences and tendencies. The portfolio strength of Becle is based in the profound legacy of its iconic internally developed brands such as Jose Cuervo®, combined with complementary acquisitions such as Three Olives®, Hangar 1®, Stranahan’s®, Bushmills®, Pendleton® and Boodles®, as well as a relentless focus on innovation that during the years has created renowned brands such as 1800®, Maestro Dobel®, Centenario®, Kraken®, Jose Cuervo® Margaritas and b:oost®, among others. Some of Becle’s brands are sold and distributed in more than 85 countries.

EBITDA

EBITDA is a measure used in the Company’s financial analysis that is not recognized under IFRS but is calculated from amounts that derive from the Company’s Financial Statements. We calculate EBITDA as net income plus depreciation and amortization, income tax expense, and interest expense, less interest income, plus foreign exchange loss (gain).

EBITDA is not an IFRS measure of liquidity or performance, nor is EBITDA a recognized financial measure under IFRS. We believe that EBITDA can be useful to facilitate comparisons of operating performance between periods on a combined basis, but these metrics may be calculated differently by other issuers. EBITDA should not be construed as alternatives to (i) net income as an indicator of the Company’s operating performance or (ii) cash flow from operating activities as a measure of the Company’s liquidity.

Disclaimer

This press release contains certain forward-looking statements which are based on Becle’s current expectations and observations. Actual results obtained may vary significantly from these estimates. The information related to future performance contained in this press release should be read jointly with the risks included in the “Risk Factors” section of the Annual Report filed with the Comision Nacional Bancaria y de Valores (Mexican National Banking and Securities Commission). This information, as well as future statements made by Becle or by any of its legal representatives, either in writing or verbally, may vary significantly from the actual results obtained. These forward-looking statements speak only as of the date on which they are made, and no assurance can be made as to the actual results obtained. Becle undertakes no obligation and does not intend to update or review any of such forward-looking statements, whether as a result of new information, future developments and other related events.

Consolidated statement of comprehensive income

 

Second quarter ended June 30, 2019

Second quarter ended June 30, 2018

Year over year variance

(Figures in millions, except per share amounts)

(U.S. $)(1)

(Pesos)

% of net sales

(Pesos)

% of net sales

$

%

Net sales

364

 

6,969

 

 

7,177

 

 

 

(208

)

(2.9

)

Cost of goods sold

165

 

3,164

 

45.4

2,790

 

38.9

 

374

 

13.4

 

Gross profit

199

 

3,805

 

54.6

4,387

 

61.1

 

(582

)

(13.3

)

Advertising, marketing and promotion

84

 

1,601

 

23.0

1,721

 

24.0

 

(119

)

(6.9

)

Distribution

12

 

234

 

3.4

312

 

4.4

 

(78

)

(24.9

)

Selling and administrative

38

 

724

 

10.4

631

 

8.8

 

93

 

14.7

 

Other (income) expenses, net

(0

)

(2

)

0.0

62

 

0.9

 

(64

)

(103.4

)

Operating profit

65

 

1,247

 

17.9

1,661

 

23.1

 

(414

)

(24.9

)

Financial results, net

5

 

88

 

1.3

(367

)

-5.1

 

455

 

(124.1

)

Profit before income taxes

61

 

1,159

 

16.6

2,028

 

28.3

 

(869

)

(42.8

)

Total income taxes

16

 

301

 

4.3

577

 

8.0

 

(276

)

(47.8

)

Consolidated net income

45

 

858

 

12.3

1,451

 

20.2

 

(593

)

(40.9

)

Non-controlling interest

(1

)

(11

)

-0.2

1

 

0.0

 

NM

 

NM

 

Controlling net income

45

 

869

 

12.5

1,450

 

20.2

 

(581

)

(40.1

)

 

 

Depreciation and amortization

8

 

144

 

126

 

 

 

EBITDA

73

 

1,391

 

20.0

1,787

 

24.9

 

(396

)

(22.2

)

 

Earnings per share

0.01

 

0.24

 

 

0.40

 

 

 

Shares (in millions) used in calculation of earnings per share

3,586

 

3,586

 

3,585

 

 

(1) U.S. dollars translated at 19.1250 Mexican pesos solely for the convenience of the reader

Consolidated statement of comprehensive income

 

 

Six months ended June 30, 2019

Six months ended June 30, 2018

Year over year variance

(Figures in millions, except per share amounts)

(U.S. $)(1)

(Pesos)

% of net sales

(Pesos)

% of net sales

$

%

Net sales

639

 

12,247

 

 

11,483

 

 

763

 

6.6

 

Cost of goods sold

295

 

5,657

 

46.2

4,452

38.8

 

1,206

 

27.1

 

Gross profit

344

 

6,589

 

53.8

7,032

61.2

 

(442

)

(6.3

)

Advertising, marketing and promotion

139

 

2,667

 

21.8

2,551

22.2

 

116

 

4.5

 

Distribution

24

 

454

 

3.7

504

4.4

 

(50

)

(10.0

)

Selling and administrative

74

 

1,416

 

11.6

1,313

11.4

 

103

 

7.8

 

Other (income) expenses, net

(9

)

(181

)

-1.5

46

0.4

 

(227

)

(496.2

)

Operating profit

117

 

2,234

 

18.2

2,618

22.8

 

(384

)

(14.7

)

Financial results, net

7

 

125

 

1.0

412

3.6

 

(287

)

(69.7

)

Profit before income taxes

110

 

2,109

 

17.2

2,206

19.2

 

(97

)

(4.4

)

Total income taxes

29

 

548

 

4.5

613

5.3

 

(65

)

(10.6

)

Consolidated net income

81

 

1,561

 

12.7

1,593

13.9

 

(32

)

(2.0

)

Non-controlling interest

(0

)

(1

)

0.0

0

0.0

 

NM

 

NM

 

Controlling net income

82

 

1,561

 

12.8

1,592

13.9

 

(31

)

(1.9

)

 

 

 

 

 

 

 

 

Depreciation and amortization

16

 

304

 

 

244

 

 

 

EBITDA

132

 

2,538

 

20.7

2,861

24.9

 

(324

)

(11.3

)

 

 

 

 

 

 

Earnings per share

0.02

 

0.44

 

 

0.44

 

 

 

 

 

 

 

 

 

 

 

Shares (in millions) used in calculation of earnings per share

3,586

 

3,586

 

 

3,585

 

 

 

(1) U.S. dollars translated at 19.1587 Mexican pesos solely for the convenience of the reader

Consolidated statement of financial position

 

 

 

 

June 30,

2019

December 31,

2018

(Figures in millions)

(U.S. $)(1)

(Pesos)

(Pesos)

Assets

 

 

 

 

 

 

Cash and cash equivalents

454

8,704

12,028

Accounts receivable, net

290

5,556

8,536

Inventories, net

599

11,490

8,162

Other current assets

168

3,229

2,502

 

 

 

 

 

 

Total current assets

1,512

28,979

31,228

 

 

 

Non-current inventories

379

7,263

6,859

Property, plant and equipment, net

311

5,965

5,506

Right-of-use assets

101

1,942

0

Deferred tax Asset

74

1,417

1,454

Intangible assets and trademarks, net

744

14,263

14,664

Goodwill

323

6,192

6,354

Other assets

33

639

646

 

 

 

Total long-term assets

1,966

37,681

35,483

 

 

 

Total assets

3,478

66,660

66,711

 

 

 

Liabilities & stockholders’ equity

 

 

 

 

 

 

Current installment of notes payable to Banks

2

47

48

Trade accounts payable

120

2,293

2,594

Current lease liabilities

6

106

0

Accruals

87

1,658

2,348

Other liabilities

31

589

102

 

 

 

Total current liabilities

245

4,694

5,092

 

 

 

Long term debt, excluding current interest payable

495

9,498

9,745

Non-current lease liabilities

93

1,775

0

Environmental reserve

6

118

121

Other long-term liabilities

15

294

314

Deferred income taxes

192

3,679

3,568

 

 

 

Total long-term liabilities

801

15,364

13,748

 

 

 

Total liabilities

1,046

20,057

18,840

 

 

 

 

 

 

Total controlling interest

2,428

46,536

47,805

Non-controlling interest

3

66

67

 

 

 

Total stockholders’ equity

2,431

46,603

47,872

 

 

 

Total liabilities and stockholders’ equity

3,478

66,660

66,711

 

 

 

(1) U.S. dollars translated at 19.1685 Mexican pesos solely for the convenience of the reader

 

 

 

Consolidated statement of cash flows

 
(Figures in millions)

Six months ended June 30, 2019

Six months ended June 30, 2018

(U.S. $)(1)

(Pesos)

(Pesos)

Operating activities

Income before income taxes

110

 

2,109

 

2,206

 

Items relating to investing activities:
Depreciation and amortization

16

 

304

 

244

 

Loss on sale of property, plant and equipment

1

 

15

 

16

 

Interest income

(6

)

(110

)

(83

)

Items relating to financing activities:
Cancellation of shares

61

 

1,170

 

0

 

Unrealized foreign exchange profit

(13

)

(255

)

64

 

Long term debt amortization

0

 

7

 

7

 

Interest expense

14

 

269

 

209

 

Subtotal

183

 

3,509

 

2,663

 

Changes in:
Accounts receivable

154

 

2,952

 

2,006

 

Related parties

(6

)

(108

)

0

 

Other receivables

(30

)

(569

)

(606

)

Inventories

(195

)

(3,731

)

(2,651

)

Security deposits

(0

)

(1

)

0

 

Prepayments

(4

)

(83

)

(479

)

Trade accounts payable

(9

)

(178

)

(226

)

Other assets

0

 

4

 

98

 

Other liabilities

29

 

558

 

(574

)

Accruals

(42

)

(804

)

(921

)

Income taxes paid

(21

)

(400

)

(673

)

Employee statutory profit sharing

(0

)

(9

)

(14

)

Changes in direct employee benefits

0

 

4

 

(59

)

 
Net cash from operating activities

60

 

1,144

 

(1,437

)

Investing activities

Investment in property, plant and equipment, net

(42

)

(800

)

(150

)

Investment in intangible assets, net

(2

)

(45

)

(3,104

)

Interest collected

6

 

110

 

83

 

Proceeds from sale of property, plant and equipment

0

 

7

 

2

 

Net cash used in investing activities

(39

)

(742

)

(3,177

)

 
 

Financing activities

Dividends paid

(102

)

(1,962

)

(1,819

)

Repurchase of shares, net

6

 

107

 

(63

)

Cancellation of shares

(61

)

(1,170

)

0

 

Payments of lease liability

(13

)

(242

)

0

 

Interest paid

(9

)

(181

)

(202

)

 
Net cash used in financing activities

(180

)

(3,447

)

(2,084

)

Net decrease in cash and cash equivalents

(159

)

(3,045

)

(6,698

)

Impacts due to the fx rate on cash

(15

)

(279

)

140

 

Cash and cash equivalents:

At beginning of the period

627

 

12,028

 

19,996

 

At end of period

454

 

8,704

 

13,438

 

 

(1) U.S. dollars translated at 19.1685 Mexican pesos solely for the convenience of the reader.

Supplemental Information (unaudited)

Volume by region 1H19 (in 000s nine-liter cases)

 

Region

H1 2019 PF*

H1 2019

H1 2018 PF*

H1 2018

(Var. % YoY) PF*

(Var.% YoY)

U.S. & Canada

5,473

5,664

5,068

5,402

8.0

%

4.9

%

Mexico

2,775

2,780

2,422

2,431

14.6

%

14.4

%

Rest of the World

1,045

1,054

1,042

1,058

0.3

%

-0.4

%

Total

9,293

9,498

8,532

8,891

8.9

%

6.8

%

* Pro forma for the non-renewal of the distribution agreement for the Cholula Food Company Sauce in April of this year. For comparison purposes only.

Net sales by region 1H19 (in MXN$ millions)

 

Region

H1 2019 PF*

H1 2019

H1 2018 PF*

H1 2018

(Var. % YoY) PF*

(Var.% YoY)

U.S. & Canada

7,771

8,107

6,918

7,645

12.3

%

6.0

%

Mexico

2,553

2,558

2,213

2,223

15.4

%

15.1

%

Rest of the World

1,567

1,581

1,593

1,615

-1.6

%

-2.1

%

Total

11,891

12,246

10,724

11,483

10.9

%

6.6

%

* Pro forma for the non-renewal of the distribution agreement for the Cholula Food Company in April of this year and a base comparison effect resulting from the delay in billing of discounts in the U.S. from one of our large distributors that occurred during last year’s second quarter. For comparison purposes only.

Volume by category 1H19 (in 000s nine-liter cases)

 

Category

H1 2019 PF*

H1 2019

H1 2018 PF*

H1 2018

(Var. % YoY) PF*

(Var.% YoY)

Jose Cuervo

2,898

2,898

2,669

2,669

8.6

%

8.6

%

Other Tequilas

1,311

1,311

1,211

1,211

8.3

%

8.3

%

Other Spirits

1,704

1,704

1,587

1,587

7.4

%

7.4

%

Non-Alcoholic and Other

1,826

2,031

1,656

2,015

10.3

%

0.8

%

RTD

1,554

1,554

1,409

1,409

10.3

%

10.3

%

Total

9,293

9,498

8,532

8,891

8.9

%

6.8

%

* Pro forma for the non-renewal of the distribution agreement for the Cholula Food Company in April of this year. For comparison purposes only.

Net sales by category 1H19 (in MXN$ millions)

 

Category

H1 2019 PF*

H1 2019

H1 2018 PF*

H1 2018

(Var. % YoY) PF*

(Var.% YoY)

Jose Cuervo

4,316

4,316

3,885

3,943

11.1

%

9.5

%

Other Tequilas

2,635

2,635

2,378

2,394

10.8

%

10.1

%

Other Spirits

2,716

2,716

2,465

2,488

10.2

%

9.2

%

Non-Alcoholic and Other

947

1,302

839

1,482

12.9

%

-12.1

%

RTD

1,277

1,277

1,157

1,176

10.4

%

8.6

%

Total

11,891

12,246

10,724

11,483

10.9

%

6.6

%

* Pro forma for the non-renewal of the distribution agreement for the Cholula Food Company in April of this year and a base comparison effect resulting from the delay in billing of discounts in the U.

Contacts

Investor Relations:

Mariana Rojo

marojo@cuervo.com.mx

Alfredo Rubio

alrubio@cuervo.com.mx

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