Emperador Inc., the liquor vehicle of businessman Andrew Tan, grew its net income by 5 percent last year to P6.1 billion and said it is on track with its financial targets over the next two years.
In a statement, the company said net income last year grew 5 percent to P6.1 billion from P5.8 billion in 2013 while consolidated revenues climbed 7 percent to P32 billion.
Emperador earlier said it aims to double its net income by 2016 to 2017 from the P5.8 billion recorded in 2013 as it continues its expansion in the domestic and global markets.
“We have successfully transformed Emperador into a global company after our acquisition of Whyte & Mackay in the United Kingdom and various vineyard and brandy production facilities in Spain. We see 2015 as the beginning of the rapid expansion of our businesses, both in the domestic and global markets,” Emperador chairman Andrew Tan said.
“This year, we expect our revenues to grow by 35 percent,” Tan added.
Emperador president Winston Co said they see 2015 as “the busiest and most exciting year for the company” with eight major products lined up for launch in the domestic market.
London-based market intelligence firm Euromonitor International forecast that the global brandy market will see healthy growth from 2013 to 2018, with volumes reaching 195 million cases by 2018.
“Out of 100 bottles of brandy sold in the world today, 21 bottles are Emperador,” said Emperador international managing director Jorge Domecq said.
“We are set to launch Emperador in several countries in Europe and Africa, and we will be very active in Duty Free travel retail shops globally,” he said.
“Depending on the price points required by our clients, we can supply Emperador products from either the Philippines or Spain. With our aggressive pace, we expect our current share in the world brandy market to grow even further,” Domecq added.
Emperador chief finance officer Dina Inting said the company ended 2014 with a net cash position of P4.85 billion despite spending nearly P35 billion for its overseas acquisitions last year.
“We will be debt-free in a few months because we intend to pre-pay our loan using the huge cash pile that is now sitting in our balance sheet.
This gives us a lot of room for more acquisitions and expansion activities when opportunities arise in the domestic and global markets,” Inting said.
Emperador operates a 500-hectare technologically advanced vineyard in Toledo, Spain through its subsidiary, Grupo Emperador Spain, S.A., which is expected to raise grape produce by 500 percent annually.
The Toledo vineyard is part of the more than 1,000 hectares of prime vineyard land in Spain that Emperador acquired for P5.8 billion in August last year.
Emperador also sees expansion in the Vietnam market with the launching of Emperador Deluxe this year.
Emperador is 87.55-percent owned by Tan’s holding firm, Alliance Global Group Inc. The group also has interests in property development (Megaworld Corp.); quick-service restaurants via McDonald’s franchise (Golden Arches Development Corp.); and integrated tourism development businesses via Resorts World Manila and Resorts World Bayshore (Travellers International Hotel Group Inc.).