Becle Profit Surges Fourfold on Forex Gains Despite Sales Dip

Becle, the world’s largest tequila producer and parent company of Jose Cuervo, reported a fourfold increase in second-quarter profit, largely driven by foreign exchange gains despite weaker demand in key markets.

Net profit reached 2.0 billion pesos ($106.6 million), surpassing the 1.8 billion pesos forecast by LSEG analysts. Revenue edged up 2.8% to 11.5 billion pesos, slightly below the projected 11.7 billion pesos. Adjusted for currency effects, profits rose 22% even as net sales declined 6% due to lower liquor volumes across most regions except Mexico.

The United States and Canada, which account for nearly 60% of Becle’s revenue, saw a 7% drop in sales volumes amid restrained Canadian retail purchases. Meanwhile, sales in Mexico rose 7%, offsetting part of the decline, while volumes in other markets fell 11% amid high inventories.

Becle credited its strong profit growth to 557 million pesos in foreign-exchange gains, reversing a 1.3-billion-peso financial loss from the prior year. A 2.6% depreciation of the Mexican peso against the U.S. dollar over 12 months boosted dollar-denominated earnings.

The company warned of a “volatile and competitive” environment but noted early signs of recovery in some markets. Becle’s portfolio extends beyond tequila to brands like Creyente mezcal, Kraken rum, Stranahan’s whiskey, and Boodles gin.

Despite U.S. threats of new tariffs on Mexican goods starting August 1, tequila is expected to remain exempt under the USMCA trade pact. U.S. imports of tequila surged 14% in 2024 to $5.3 billion, surpassing combined imports of whiskey, gin, rum, brandy, and vodka.