Becle, S.A.B. de C.V.

Becle reported second-quarter 2026 consolidated net sales of MXN 9.9 billion, down 13.9% year over year, or down 5.8% on a constant-currency basis. Gross profit was MXN 5 billion, down 21.2%, and gross margin was 50.4% versus 55.1% in the second quarter of 2025; on a constant-currency basis, gross margin would have been 53%. EBITDA declined 23.4% and EBITDA margin was 20.9%; on a constant-currency basis, EBITDA margin would have been 23.1%. Net income was MXN 1.4 billion, down 29.6%, and EPS was MXN 0.39 versus MXN 0.56 a year ago. For the first half of 2026, operating cash flow was MXN 4.2 billion; cash and cash equivalents were MXN 9.6 billion and total debt was MXN 18.5 billion as of June 30, with adjusted net leverage at 1.1x. Management confirmed full-year 2026 guidance for a low single-digit decline in consolidated net sales value on a constant-currency basis.

Juan Legorreta said the business is holding up despite a cautious consumer and a difficult spirits backdrop, with tequila and the brand portfolio still showing underlying resilience. He pointed to mid-single-digit organic volume growth outside the U.S., strong EBITDA margin on a constant-currency basis, healthy cash generation, and leverage within target as evidence that the company is in a solid financial position. He also said the company remains focused on disciplined execution, brand strength, and long-term profitable growth, while keeping an open mind on acquisition opportunities if something attractive becomes available.

Rodrigo de la Maza Serrato said the quarter’s headline decline in sales was driven mainly by foreign-exchange effects from the peso’s appreciation versus the U.S. dollar. He noted that A&P was 19.5% of net sales year to date, within the 19% to 21% full-year range, distribution expenses were 4.5% of net sales, and SG&A fell 9.2% or 1.8% on a constant-currency basis due to overhead discipline. He highlighted MXN 9.6 billion of cash, MXN 18.5 billion of debt, MXN 4.2 billion of operating cash flow in the first six months, and adjusted net leverage of 1.1x, saying the balance sheet remains very strong and the company continues to return capital through its annual dividend.

Analysts focused on U.S. tequila trends, inventory normalization, and whether aggressive discounting in the category is coming from destocking or structural competition. Management said it is too early to call U.S. tequila demand normalized, citing volatility month to month, but said inventory rebalancing is mostly complete and should lead to better shipment/depletion alignment in the second half. On pricing, management said competitors are cutting prices aggressively in a contracting market, while Becle is using tactical promotions and short-term adjustments to stay competitive without changing its long-term brand positioning.