© Reuters. Bottles of Jose Cuervo Tequila rest on a shelf in Mexico City, Mexico, February 8, 2017. REUTERS/Edgard Garrido/File photo
MEXICO CITY (Reuters) – Mexican distiller Becle, the world’s largest tequila producer, said on Friday that it maintained its guidance of annual sales in the high single digits on a constant currency basis, after a stronger peso ate into its earnings abroad.
Without the FX impact, Becle’s gross margin would have expanded over the second quarter instead of shrinking, an executive said in an earnings call a day after it posted a net profit drop of 5%.
The company expects stronger results over the coming months, the executive said, which should enable the firm to meet its target, as well as benefits from lower prices for agave – the prickly plant used to make tequila – over the longer term.
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