Emperador clears P6.1 B in 2014, sees 5-fold revenue hike this year

MANILA, Philippines - Emperador Inc., the liquor firm of Andrew Tan-led conglomerate Alliance Global Group Inc. (AGI), said it expects revenue growth to increase five times this year as it seeks to reap the benefits of last year’s move to become a global company.

Emperador said yesterday  its earnings last year grew five percent to P6.1 billion from P5.8 billion in 2013.

The company’s consolidated revenues was likewise robust as it rose seven percent year-on-year to P32 billion.

 “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,” Emperador chairman Andrew Tan said. 

Emperador wrapped up the acquisition of a Whyte and Mackay through wholly owned unit Emperador UK Ltd. for a total value of £430 million or P31 billion last Oct. 31.

Whyte and Mackay is considered the fifth largest maker of Scotch whisky in the world and holds one of the world’s largest aged whisky inventories.

This 2015,Tan said the company expects revenues to grow 35 percent, a five-fold increase from last year’s seven-percent growth.

 “We will be launching eight major liquor products in the Philippines to cover all segments and categories in the market. This 2015 will be the busiest and most exciting year for the company,” Emperador president Winston Co said.

Citing a report from Euromonitor International, Emperador said the global brandy market is forecast to experience a healthy growth from 2013 to 2018, with volume eyed to reach 195 million cases by 2018. 

For its part, the Philippines’ largest liquor company constitutes the lion’s share of brandy sold globally.

“Out of 100 bottles of brandy sold in the world today, 21 bottles are Emperador,” Emperador International managing director Jorge Domecq said.

This year, Domecq said the company is set to launch Emperador in several countries in Europe and Africa, and “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,” he added.

Emperador said it ended 2014 with a strong balance sheet and a net cash position of P4.85 billion. 

 “In spite of spending close to P35 billion overseas last year, we will be debt-free in a few months because we intend to prepay our loan using the huge cash pile that is now sitting in our balance sheet.  This gives us a lot of room for more acquisitions and expansion activities when opportunities arise in the domestic and global markets,” Emperador chief finance officer Dina Inting said.

Emperador owns 100 percent of Emperador Distillers Inc., which produces and markets its own products under the Emperador brand such as Emperador, Generoso and Emperador Light brandies, and a line of flavored alcoholic beverages called The Bar.

The liquor firm is majority owned by Tan’s AGI, which is also into property (Megaworld Group), fastfood (McDonald’s franchise operator Golden Arches Development Corp.) and hotels and casino (Travellers International Hotel Group Inc.)