The following is a summary of the Becle, S.A.B. De C.V. (BCCLF) Q2 2024 Earnings Call Transcript:

Financial Performance:

• Becle reported a Q2 2024 consolidated net sales increase of 0.8% to MXN11.1 billion, with a constant currency basis increase of 3.1%.

• Gross margin for the quarter reached 54.3%, marking a 350 basis point increase from the previous year, primarily driven by regional price increases, premiumization, and favorable product and geographic mix.

• EBITDA for Q2 increased by 20.2% year-over-year to MXN2.3 billion, with the EBITDA margin expanding 340 basis points to 20.7%.

• Net income for the quarter decreased by 62.4% to MXN501 million, with earnings per share at MXN14.

Business Progress:

• Despite challenges in various markets, strategic premiumization and effective market strategies drove positive trends and positioned the company well for future growth.

• Becle maintained market leadership in Mexico and demonstrated strong growth in premium tequila brands.

• The company continued to deploy strategic pricing and product mix adjustments to navigate market complexities and maintain profitability.

Opportunities:

• The company is focused on leveraging premium tequila offerings and enhanced brand positioning to drive growth and market presence.

• Continued investment in inventory optimization and sustainable practices aiming to enhance financial stability and market competitiveness.

Risks:

• The U.S. and Canada regions face ongoing inflationary pressures and slowdowns in consumer spending, impacting overall performance.

• Geopolitical and economic headwinds in the EMEA and APAC regions contribute to ongoing demand pressures and shipment challenges.

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