Emperador sets P4 billion capex for 2025 expansions

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Emperador enters 2025 on a bullish note, as its brandy business paved the way for growth in the first quarter

MANILA, Philippines – Filipino liquor company Emperador Incorporated is allocating P4 billion for its 2025 capital expenditures as it ramps up expansion.

In a disclosure to the stock exchange on Monday, June 9, Emperador said most of its budget will go to its whisky business as it expects further growth by 2026.

“We are almost at the completion of the Dalmore distillery expansion in Alness, Scotland. This is envisioned to double the brand’s production capacity while also providing a new visitor experience,” said Emperador president and CEO Winston Co.

The company is also expanding its Invergordon distillery, where its whisky maturation complex will grow to 92 hectares from just 45.4 hectares. This will allow the company to accommodate 1.5 million more casks of maturing whisky.

Emperador entered 2025 on a bullish note, as its brandy business paved the way for growth in the first quarter. Income went up to P1.85 billion in the January-to-March period, a 6.5% increase from the P1.74 billion logged in the same period last year.

Revenues inched up to P13.21 billion from P13.12 billion — brandy sales improved by 9.9% to P8.66 billion, while whisky sales were down 13.3% at P4.55 billion in the first quarter.

“The global liquor industry has been challenging for a few partners and we see that the whisky is still much more stable and resilient compared to the other categories in the alcoholic beverage segment,” Co said during a stockholders’ meeting on Monday.

“Nevertheless, we are seeing a slowdown in the whisky business across the world — in North America, in China, and even in Europe. The market has become very competitive given the situation and we believe, however, that this is a cyclical… we believe that eventually, the scotch-whisky business should return to growth and we are hoping that by next year, starting 2026, there should be a resurgence and a rebound back to regular consumption.”

Emperador’s 2024 full-year financial results showed that struggle. Net profit was at P6.32 billion, falling by 10.3% from 2023 as the company posted lower revenues and gross profit margins.

Revenues also declined 6.1% to P61.6 billion as both brandy and whisky sales declined by 9% and 1.6%, respectively.

Its finances were also affected by its investments.

However, the company retains a positive outlook for the year ahead, supported by its first quarter performance.

“Given the signals from the market, we expect to have a better year for the brandy business,” Co said.

On Monday, the company also elected a new board of directors, which includes former energy secretary Jose Rene Almendras and Katherine Tan, wife of Andrew Tan. – Rappler.com