Mexico City Economic Update

MEXICO CITY (Reuters) – Mexico's Becle, the world's largest tequila producer, reported a net profit increase of over four times in Q3, attributed to favorable foreign exchange dynamics.

Net profit reached 896.11 million pesos (approximately $45.51 million), with revenues rising nearly 4%, totaling 10.95 billion pesos.

The Mexican peso was 13% weaker against the U.S. dollar at the end of September 2024 compared to the previous year, affecting many Mexican firms, including Becle.

Becle executives noted, "Despite challenges, our sales improved due to premiumization efforts and favorable exchange-rate effects, boosting profitability and mitigating industry slowdowns in key markets," in a filing to Mexico's main stock exchange.

Net sales in the U.S. and Canada, accounting for 60% of Becle's sales, surged nearly 11% year-over-year, although volumes dipped by 3%. The decline mainly affected ready-to-drink and non-alcoholic beverages.

In Mexico, which contributes about 25% of sales, both sales and volumes fell around 15%. Becle is focusing on premium pricing to maintain and grow market share even amid declining spirit demand.

While the company primarily earns from tequila, it also produces Creyente mezcal, Stranahan's whiskey, Kraken rum, and Boodles gin.

(Exchange rate: $1 = 19.6921 Mexican pesos at end-September)