Q2 2024 Becle SAB de CV Earnings Call Transcript
Key Points
- Becle SAB de CV (BCCLF) reported a 0.8% increase in consolidated net sales, reaching MXN11.1 billion, with a 3.1% increase on a constant currency basis.
- Gross margin improved by 350 basis points to 54.3%, driven by regional price increases, premiumization, and favorable product and geographic mix.
- The US and Canada regions reported solid growth, with a 12.1% increase in net sales value and a 16.6% increase in tequila sales.
- The company successfully maintained market leadership in Mexico through strategic premiumization and pricing initiatives, despite industry contractions.
- Becle SAB de CV (BCCLF) achieved a 20.2% year-over-year increase in EBITDA, with a margin expansion of 340 basis points to 20.7%.
- An accident at the La Rojeña factory resulted in a fire, leading to the suspension of operations in the affected area.
- The EMEA and APAC regions faced ongoing consumer demand pressures due to geopolitical and economic headwinds, affecting shipments.
- SG&A expenses increased by 17%, driven by investments in infrastructure and organizational capability, impacting margins.
- The net financial result for the second quarter was a negative MXN1.3 billion, primarily due to a non-cash foreign exchange loss.
- The company experienced a 62.4% decrease in consolidated net income, with the net margin dropping to 4.5% from 12% in the previous year.
Good morning, and thank you for joining Becle's second quarter unaudited financial results call. During this call, you may hear certain forward-looking statements. These statements may relate to our future prospects, developments and business strategies, and may be identified by our use of terms and phrases, such as anticipate, believe, could, estimate, expect, intend, may, plan, predict, project, will, goals, target, strategy and similar terms and phrases and may include references to assumptions.
Forward-looking statements are based on our current expectations and assumptions regarding our business, the economy and other future conditions. Because forward-looking statements relate to the future, by their nature, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict.
Our actual results may differ materially from those in forward-looking statements. For all the foregoing reasons, you are cautioned against relying on such forward-looking statements. We undertake no obligation to publicly update or revise any forward-looking statements
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