Jose Cuervo distiller's profit slumps, dampened by strong peso (updated)

Becle SAB de CV

25/10/2023 23:24

(Adds explanation for earnings fall, company statement, dollar
conversion of profit)
       MEXICO CITY, Oct 25 (Reuters) - Mexican distiller Becle
 CUERVO.MX , the world's largest tequila producer, on Wednesday
reported a 88% slide in third-quarter profit from last year,
after a stronger peso diluted foreign earnings.
    The Mexico City-based firm, which sells Jose Cuervo family
tequilas as well as mezcal, whiskey and other liquors, reported
net profit at 203.5 million pesos ($11.7 million).
    The North American region saw overall sales up 4.3%, but
this did little to quell the impact of the strong appreciation
of the Mexican peso against the dollar in the period.
    Revenues slipped 8.5% from July to September, landing at
10.5 billion pesos.
    Becle's management said in a filing to Mexico's main stock
exchange it had been hit by "a challenging business environment,
characterized by exchange rate appreciation and complex
macroeconomic conditions."
    After reporting a net profit drop across several consecutive
quarters, the company in July had forecast stronger results for
later in the year.

        ($1 = 17.4279 Mexican pesos at end-September)

 (Reporting by Isabel Woodford and Aida Pelaez-Fernandez;
Editing by Brendan O'Boyle)
 ((Brendan.OBoyle@thomsonreuters.com;))