Mexican tequila maker Cuervo pockets more profit on weaker peso, despite volume dip

MEXICO CITY, April 29 (Reuters) - Becle CUERVO.MX, the world's largest tequila producer, on Tuesday reported a first-quarter profit up 15% from a year earlier, pulling in more pesos due to the currency's weakening despite moving less product in the period.

Becle's net profit hit 1.16 billion pesos ($56.69 million), in line with estimates from analysts polled by LSEG.

The firm, which makes the bulk of its income from tequilas but also produces a range of spirits such as Creyente mezcal, Stranahan's whiskey, Kraken rum and Boodles gin, attributed the boost to lower input costs and exchange-rate tailwinds given the Mexican peso's depreciation.

The currency weakened close to 24% against the U.S. dollar from the end of March last year to the end of March this year.

The U.S. and Canada remained Becle's largest market, though volumes slipped 3.6% year-on-year to just over 3 million crates. In Mexico, volumes dropped 13% and in the rest of the world they dropped 14%.

Still, revenues ticked up 7% to 9.63 billion pesos, slightly above the LSEG-compiled estimate.

"Going into 2025, we are encouraged by our ability to manage the business effectively despite ongoing industry pressures and consumer caution," management said in a statement.