Emperador net profit up by 11% to P7.7B
Emperador Inc. grew its net profit by 11 percent last year to P7.7 billion despite a drop in revenues.
In a disclosure to the stock exchange, Emperador reported a six-percent fall in revenues to P41 billion from P43.6 billion in 2015. The company reported higher net earnings by cutting the costs of goods sold to P25.4 billion last year from P29.6 billion as its selling and distribution expenses grew by less than P300 million and its general and administrative expenses grew by just P25 million.
The company blamed the drop in revenues to a “slowdown attributed primarily to the termination at end-2015 of the distribution of an agency brand from the Scotch whisky business.”
Emperador divides its business between the Emperador or the brandy business and the Whyte Mackay Group Ltd. which produces and sells Scotch whisky, vodka, liqueurs, and other alcoholic drinks.
Revenues from the brandy business totalled P30 billion last year from P27.1 billion in 2015 while revenues from WMG amounted to P11.5 billion, down from P16.5 billion.