Q3 2024 Becle SAB de CV Earnings Call Transcript
Key Points
- Becle SAB de CV (BCCLF) reported a 3.9% increase in consolidated net sales, driven by favorable foreign exchange effects and a successful premiumization strategy.
- The company's gross margin expanded by 500 basis points, and EBITDA margin improved by 830 basis points, attributed to reduced agave-related input costs and foreign exchange benefits.
- Tequila continues to lead growth in the US and Canada, with a 4.3% increase in tequila volumes, demonstrating the resilience of the premiumization strategy.
- In Mexico, premium brands are gaining momentum, helping to mitigate broader market pressures and expand market share.
- Asia remains a key growth driver with a 33% year-over-year increase in depletions, supported by stable inflation and demand for premium brands.
- Consolidated volumes declined by 7.2%, indicating challenges in maintaining shipment levels across various regions.
- The US and Canada faced market pressures, reduced consumer spending, and intensified competition, leading to a 2.7% decrease in shipments.
- EMEA and APAC regions experienced a 13% decline in shipments, primarily due to cautious consumer spending and declines in tourism in Europe.
- Macroeconomic pressures in Mexico contributed to a contraction across the spirits industry, with shipments falling 14.6% year-over-year.
- The company faces ongoing challenges from inflationary pressures and political uncertainty in Latin America, impacting retailer inventory adjustments.
Good morning and thank you for joining Becle's third-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 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, whether as a result of new information, future events or otherwise.
Before we begin, we would like to remind you that the figures discussed on
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