Mexican tequila maker Cuervo sees improved sales growth
Mexican distiller Becle (CUERVO.MX) , better known as the parent company of tequila brand Jose Cuervo, updated its 2022 full-year guidance on Friday, improving net sales estimates after posting a positive quarterly report.
The company now expects full-year net sales growth in the mid-teens, Chief Financial Officer Fernando Suarez said, up from a prior outlook of mid-single-digit growth the company posted in March.
In a call to discuss its third quarter results released on Thursday, Suarez said the group is maintaining its CAPEX outlook for the period in the $225 million-$250 million range.
Shares of Becle were up more than 4.5% on Friday following the announcements, on track for their best day in six months and outperforming Mexico's main S&P/BMV IPC (.MXX) stock index, which rose by just 0.3%.
During the conference call, the Mexican distiller also noted its businesses in the United States, Mexico and elsewhere in Latin America were affected by supply chain issues in the third quarter.
"Since last year, we have been under pressure on glass," said Suarez. "It continues to be an issue but we are working towards obtaining commitments with glass suppliers."
Becle posted on Thursday a 29.6% jump in third-quarter net profit, to reach $85.2 million, as it hiked prices and boosted sales of its premium brands.
"Cuervo shows its skill in navigating the current stressed environment with solid results, beating our estimates," Barclays analysts said in a research note.