Becle (CUERVO) Q3 2025 earnings summary

Executive summary

• Consolidated volumes rose 3.7% year-over-year, led by 5.2% growth in the spirits portfolio, with tequila as the main driver in the U.S. and Canada, despite global industry volatility.

• Gross margin expanded by 300 basis points to 56.1%, reflecting lower agave input costs, operational efficiencies, and premiumization.

• EBITDA increased 63.3% year-over-year to P$3,459 million, with margin reaching 31.7%.

• Net income surged 354.6% year-over-year to P$4,123 million, aided by asset divestitures and FX gains.

• Divestment of non-core brands, including Boost and Lalo Spirits Holdings, to focus on premium spirits.

Financial highlights

• Net sales for 3Q25 were P$10,922 million, flat year-over-year, impacted by price normalization, geographic mix, and currency effects.

• Gross profit increased 5.4% to P$6,123 million, with gross margin up 300 bps to 56.1%.

• EBITDA margin expanded to 31.7%, up from 19.3% year-over-year.

• Net cash from operating activities was P$3,300 million for the quarter; cash balance increased by P$5,100 million from Q2, mainly due to divestitures.

• Earnings per share reached P$1.15 for the quarter.

Outlook and guidance

• Focus remains on balancing shipments and depletions, executing premiumization, and maintaining disciplined pricing and operational efficiency.

• U.S. market expected to remain highly competitive for at least the next 18 months, with continued pricing pressures.

• EMEA and APAC regions are expected to sustain momentum through commercial execution and premiumization.

• CapEx efficiency is improving, with more EBITDA generated per unit of CapEx.

• Management anticipates improving long-term fundamentals in the U.S. spirits market, especially in focus categories.