Becle (CUERVO) Q1 2026 earnings summary

Executive summary

• Q1 2026 was marked by a challenging U.S. distributor transition and inventory resets, resulting in a 13.4% volume decline and a 23.1% drop in consolidated net sales, but viewed as a strategic investment for long-term growth.

• EMEA/APAC regions delivered strong momentum and growth, outperforming flat market conditions for a third consecutive quarter.

• Mexico gained market share and outperformed industry declines, with tequila showing particular strength.

• The company maintained strong cost control, working capital discipline, and a diversified global spirits portfolio, supporting a robust balance sheet despite profit declines.

• Management focused on strategic repositioning amid a challenging and contracting industry environment.

Financial highlights

• Consolidated net sales fell 23.1% to MXN 7.4 billion, mainly due to FX headwinds and U.S. shipment declines.

• Gross profit dropped 29.7% to MXN 3.9 billion; gross margin contracted to 52.8% (56.1% constant currency), down from 57.8% year-over-year.

• EBITDA declined 52.5% to MXN 1,030 million, with margin down 860 bps to 13.9% (16.7% constant currency).

• Net income decreased 66.5% to MXN 390 million; EPS was MXN 0.11 vs. MXN 0.34 last year.

• Cash and equivalents at MXN 11.2 billion; total debt at MXN 19.2 billion, down MXN 7.5 billion year-over-year.

Outlook and guidance

• Guidance for 2026 confirmed: low single-digit consolidated net sales value decline on a constant currency basis.

• U.S. depletions expected to improve sequentially each quarter as transition stabilizes; destocking to continue into Q2.

• AMP projected at 19–21% of NSV; CAPEX guidance set at $90–110 million.

• Long-term confidence in free cash flow generation and ability to deploy capital effectively.