Mexican tequila maker Cuervo pockets more profit on weaker peso, despite volume dip

Reuters

Tue, Apr 29, 2025, 3:37 PM 1 min read

MEXICO CITY (Reuters) - Becle, the world's largest tequila producer, connected Tuesday reported a first-quarter nett up 15% from a twelvemonth earlier, pulling successful much pesos owed to the currency's weakening contempt moving little merchandise successful the period.

Becle's nett net deed 1.16 cardinal pesos ($56.69 million), successful enactment with estimates from analysts polled by LSEG.

The firm, which makes the bulk of its income from tequilas but besides produces a scope of spirits specified arsenic Creyente mezcal, Stranahan's whiskey, Kraken rum and Boodles gin, attributed the boost to little input costs and exchange-rate tailwinds fixed the Mexican peso's depreciation.

The currency weakened adjacent to 24% against the U.S. dollar from the extremity of March past twelvemonth to the extremity of March this year.

The U.S. and Canada remained Becle's largest market, though volumes slipped 3.6% year-on-year to conscionable implicit 3 cardinal crates. In Mexico, volumes dropped 13% and successful the remainder of the satellite they dropped 14%.

Still, revenues ticked up 7% to 9.63 cardinal pesos, somewhat supra the LSEG-compiled estimate.

"Going into 2025, we are encouraged by our quality to negociate the concern efficaciously contempt ongoing manufacture pressures and user caution," absorption said successful a statement.

(Reporting by Kylie Madry; Editing by Natalia Siniawski)