Cuervo Sees Strong Sales, Profit Growth In Third QuarterOctober 24, 2019
Grupo Cuervo posted net sales up 12.5% to MX$7 billion ($367m) in its fiscal third quarter ended in September, as volume rose 6.8% to 5.3 million 9-liter cases. EBITDA surged 31.5% to MX$1.3 billion ($68m), as profit margins widened for the company.
Cuervo’s sales in the U.S. and Canada jumped 10% on an underlying basis to MX$3.8 billion ($199m), on a volume increase of 8.4% to 2.7 million cases. The core Tequila business has been driving gains for Cuervo in the U.S., with its namesake brand up 8.5% in control states in the year-to-date through August and the higher-priced 1800 label rising 12.5%. The company says depletion trends continue to be strong for its super-premium Tequilas, with margins benefiting from price increases taken this year.
Globally the Jose Cuervo brand was up 9.7% to 1.6 million cases for the quarter, while the company’s other Tequilas grew 9.3% to 814,000 cases and its other spirits increased 0.7% to just under 1 million cases. In addition to its progress in the U.S., Cuervo saw its net sales in Mexico climb 15% to MX$1.6 billion ($84m) in the third quarter.—Daniel MarstellerSubscribe to Shanken News Daily’s Email Newsletter, delivered to your inbox each morning.