Becle (CUERVO) investor relations material

Executive summary

• Maintained or expanded tequila leadership in key markets despite macroeconomic headwinds and industry contraction, leveraging brand equity and disciplined execution.

• Spirits category outperformed beer and wine over the last 20 years, with tequila as the fastest-growing major spirits category globally.

• 2025 saw volume decline 4.4% and net sales decrease 2.0% year-over-year, reflecting macroeconomic pressures and shifting consumer trends impacting the global spirits industry.

• Despite lower sales, gross margin expanded 250 bps and EBITDA margin rose 540 bps for the year, driven by lower input costs and cost efficiencies.

• Premiumization and portfolio optimization, including the sale of b:oost, drove positive results.

Financial highlights

• Full-year net sales: P$43,087 million (-2.0% YoY); gross profit: P$24,113 million (+2.6% YoY); EBITDA: P$11,014 million (+23.7% YoY); net income: P$8,654 million (+118.4% YoY).

• Fourth quarter net sales: P$11,077 million (-14.1% YoY), impacted by peso appreciation, volume decline, and deliberate inventory rebalancing in the U.S.

• Gross margin for FY25: 56.0% (+250 bps YoY); EBITDA margin: 25.6% (+540 bps YoY); net income margin: 20.1% (+1,110 bps YoY).

• Cash and cash equivalents at year-end: P$10,836 million; total financial debt: P$18,983 million, down P$7,473 million YoY.

• Net cash from operating activities in 2025: P$8,159 million.

Outlook and guidance

• 2026 expected to be a transition year due to U.S. distributor realignment, with anticipated temporary shipment volatility and inventory adjustments.

• Net sales value projected to decline low single digits in 2026 (constant currency).

• A&P/AMP as % of net sales value expected at 19%-21%; CapEx guidance: US$90–110 million.

• No specific operating income guidance due to non-recurring 2025 gains.

• Long-term fundamentals remain strong, with growth expected to resume in 2027.