Emperador targets to double profit to P12B by 2017

MANILA, Philippines - Emperador Distillers Inc., the hard liquor unit of property tycoon Andrew L. Tan’s Alliance Global Group Inc., is seen to double its profits to nearly P12 billion in the medium term through the expansion of local and international operations.

Emperador is also planning to strengthen its capital base and increase its product line by tapping the debt market for the first time, the company said in a disclosure to the Philippine Stock Exchange.

Dina Inting, chief finance officer of Emperador, said the company is targeting to double its net income by 2016 or 2017 from P5.8 billion last year, supported by the planned expansion domestically and globally.

“The expansion is in line with Emperador’s strategy of diversifying and strengthening its liquor product portfolio as well as its premiumization strategy in the liquor industry,” the company said.

To further strengthen the capital base and help fund its projects, Emperador’s board of directors directed its president Winston Co “to appoint global investment banks to advise the company towards such planned expansion including, for the first time in its capital history, the raising of money via the debt market of up to 70 percent of the company’s stockholders’ equity.”

Emperador, the company behind leading brands Emperador, Generoso and Emperador Light brandies, and a line of flavored alcoholic beverages called The Bar, ended 2013 with P24 billion in cash.

The company has budgeted P4 billion for the expansion of its local bottling facility, which is currently running at 75- percent capacity. Emperador’s goal is to double its sales in the next four years to account for a third of the global brandy market.