EMPERADOR, INC. has budgeted P1.5 billion for capital expenses (capex) this year, a 50% increase from last year’s P1 billion budget, in order to “accelerate” its global expansion plans.
“We also agreed to spend ahead this year so that our development agenda can be sustained,” Emperador President and CEO Winston S. Co said at the company’s virtual stockholders meeting on Monday.
According to the firm, it is “maximizing the value and demand for each segment based on customer and preference.”
“As a global business, we are continuously adapting to evolving customer behaviour, especially in a complex and difficult environment,” Mr. Co said.
He clarified that consumer behavior differs by area or world, “based on how liquor is placed or viewed as an important or non-essential commodity.”
Its brandy and whiskey was sold in over 100 countries spanning six continents.
Despite the coronavirus disease 2019 (COVID-19) pandemic, the company’s earnings to owners increased by 18% to P8 billion last year, owing to its foreign market.
“Sales are going very well in the Americas, especially the United States, and in Europe, particularly the United Kingdom, where liquor is an important product,” Mr. Co said.
“By comparison, there have long been liquor prohibitions in many parts of the Philippines,” Mr. Co said.
The company’s net profits to owners increased by 43 percent year on year to P2.1 billion from P1.46 billion in the first quarter of this year, while its topline increased by 13 percent to P12.1 billion from P10.66 billion due to “continued strong results” from its global market.
The described whisky and brandy maker anticipates that pandemic prohibitions would be relaxed this year as a result of vaccines, which Mr. Co expects to contribute to greater air travel and “some kind of normalcy.”