Emperador profit rises 5 pct in 2014

ABS-CBN News

Posted at Mar 05 2015 10:39 AM | Updated as of Mar 05 2015 06:39 PM

MANILA, Philippines - Emperador Inc. posted a 5 percent increase in profit in 2014.

Emperador, owned by the Philippines' fourth richest man Andrew Tan, reported its net income hit around P6.1 billion in 2014, from P5.8 billion in 2013.

Consolidated revenues increased by 7 percent to P32 billion in 2014.

Tan, chairman of Emperador, said the company is targeting a 35 percent rise in revenues this year.

"We have successfully transformed Emperador into a global company after our acquisition of Whyte and Mackay in the United Kingdom and various vineyard and brandy production facilities in Spain. We see 2015 as the beginning of the rapid expansion of our businesses, both in the domestic and global markets. This year, we expect our revenues to grow by 35 percent," he said.

Last year, Emperador acquired Whyte & Mackay, the fifth largest maker of Scotch whisky in the world, for £430 million (P31 billion).

Euromonitor International earlier forecast strong growth in the global brandy market through 2018, with volume to reach 195 million cases by 2018.

Emperador International Managing Director Jorge Domecq expects the company to continue growing its market share.

"Out of 100 bottles of brandy sold in the world today, 21 bottles are Emperador. We are set to launch Emperador in several countries in Europe and Africa, and we will be very active in Duty Free travel retail shops globally. Depending on the price points required by our clients, we can supply Emperador products from either the Philippines or Spain. With our aggressive pace, we expect our current share in the world brandy market to grow even further," Domecq said.

Emperador ended 2014 with a net cash position of P4.85 billion.

Emperador Chief Finance Officer Dina Inting said the company expects to be debt-free in a few months, since it intends to pre-pay its loans.

"This gives us a lot of room for more acquisitions and expansion activities when opportunities arise in the domestic and global markets," Inting said.

Meanwhile, Emperador President Winston Co said eight major liquor products will be launched in the Philippines to cover all segments and categories in the market.

Last December, Singapore's sovereign wealth fund completed its acquisition of an 11.76 percent interest in the liquor firm worth P22 billion.