Becle third-quarter profit slumps as weaker tequila demand hits sales
Becle posts a sharp decline in third-quarter earnings as softer tequila demand and currency pressure weigh on its core business. The Jose Cuervo owner also misses market expectations on both profit and revenue, adding to concerns about slowing momentum in its key North American market.
Highlights
- Becle's third-quarter net profit drops 85% year-on-year to 633 million pesos, missing analyst expectations of 1.07 billion pesos per LSEG.
- Revenue falls 15% to 9.25 billion pesos, with total volumes declining 9% and Jose Cuervo volumes dropping 11% from a year earlier.
- North America volumes slip 3% while global volumes fall 20% on shipment delays, signaling fading tequila demand, especially in the U.S.
Quarter results and sales pressures
As reported by Reuters, Becle says net profit plunges 85% from a year earlier to 633 million pesos, or about $35 million, falling well short of the 1.07 billion pesos expected by analysts polled by LSEG.Revenue drops 15% to 9.25 billion pesos, also below the LSEG estimate of 9.96 billion pesos. Total volumes decline 9% to 5.7 million nine-liter cases, while Jose Cuervo volumes, which account for more than a third of the company’s total quarterly volumes, fall 11% from a year earlier.
The company says results are hurt by a stronger Mexican peso, which reduces the value of overseas sales when converted into local currency. It also points to a tougher selling environment and weaker demand during the quarter.
North America slowdown raises sector concerns
In the United States and Canada, volumes slip 3%, although Becle says trends improve from earlier in the year as changes to its distributor network move forward. In Mexico, volumes drop 12%, largely because of the sale of the b:oost energy drink brand.In the rest of the world, volumes fall 20%, mainly because some shipments are delayed into the fourth quarter. The weak performance adds to signs that the tequila boom may be losing momentum, especially in the U.S., Becle’s most important market.
Our earlier coverage of Famous Brands’ interim trading update highlighted how cost pressures and a Botswana-related goodwill impairment were set to weigh on earnings for the six months ended 31 August 2026. The company guided for a potential double-digit decline in basic EPS and outlined plans to cut its stake in the Botswana Retail Group as part of an asset-light strategy to reduce exposure to operating losses.
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