Shares of Jose Cuervo distiller plunge as thirst for tequila subsides (updated)
UPDATE 2-Shares of Jose Cuervo distiller plunge as thirst for tequila subsides Adds analyst comments
MEXICO CITY, Oct 29 (Reuters) - Shares in Mexico's Becle CUERVO.MX, the world's largest tequila maker, were down 11% on Thursday, following a brief trading suspension.
Shares pared losses after falling as much as 14.3% following the company's weak third-quarter results report.
Mexico's stock exchange briefly suspended trading of Becle shares after they plunged in early trading
Becle, owner of the popular Jose Cuervo tequila, reported a steep drop in third-quarter profit late Wednesday, missing market expectations
The company's results were hit by weaker demand, a stronger peso and a tougher selling environment
JPMorgan said Becle cut its 2026 outlook and now expects consolidated net sales value to decline by a mid-single-digit percentage on a constant-currency basis, citing weaker demand
Santander analysts said management warned that intense competition and weak consumer demand are unlikely to ease materially over the next 18 months
The hit to gross margins from unfavorable pricing and product mix was larger than expected, JPMorgan said
The bank also said the US spirits market remains weak as consumers opt for lower-priced brands
(Reporting by Noe Torres, Aida Pelaez-Fernandez and Natalia Siniawski; Editing by Iñigo Alexander and Daina Beth Solomon)
((Aida.Pelaez-Fernandez@thomsonreuters.com;))
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