About Becle and José Cuervo
Becle, the world’s largest tequila producer and owner of the renowned José Cuervo brand, has reported a 22% increase in its EBITDA for the first quarter of 2025 compared to the same period in 2024. This growth can be attributed to a favorable exchange rate effect and a “favorable geographic mix.”
Exchange Rate Impact
The Mexican peso depreciated approximately 24% against the US dollar from late March 2024 to the end of March 2025. This depreciation positively impacted Becle’s operations, contributing to the 7.5% increase in sales from January to March 2025, compared to the same period in 2024.
Regional Performance
In the United States and Canada, net sales increased by 20.1% despite a 3.6% decrease in sales volume. This was due to a product mix favoring higher-margin brands and the benefits of the peso’s depreciation against the dollar. In Mexico, however, sales declined by 13.8% due to reduced volume, attributed to the ongoing market contraction.
Financial Performance
Becle’s net income saw a 15.9% increase in the first quarter of 2025 compared to the same period in 2024. As of March 31, cash and cash equivalents stood at 11,014 million pesos, an increase of 3,448 million pesos from the same period in the previous year. Total financial debt amounted to 26,679 million pesos.
Planned Investments
In early March, José Cuervo announced plans to invest between 110 and 130 million USD in 2025. The company anticipates mid-single-digit sales growth compared to 2024, subject to currency fluctuations.
Potential Tariff Impact
José Cuervo estimated a potential arbitrage impact of 80 million USD in 2025 due to possible tariffs. However, the company took proactive measures by increasing shipments to the US before any potential implementation.
Key Questions and Answers
- Who is Becle? Becle is the world’s largest tequila producer and owner of the famous José Cuervo brand.
- What led to the 22% EBITDA increase? The favorable exchange rate effect and a “favorable geographic mix” contributed to the increase.
- How did sales perform in different regions? Sales increased by 7.5% globally, with a 20.1% rise in the US and Canada, while sales decreased by 13.8% in Mexico.
- What are Becle’s planned investments? José Cuervo plans to invest between 110 and 130 million USD in 2025.
- How is Becle addressing potential tariff impacts? The company increased shipments to the US before any potential tariff implementation.
