Jose Cuervo changes 2023 sales guidance after Q1 results

Mexican distiller Becle (CUERVO.MX), the world’s largest tequila producer, narrowed down its forecasts for its 2023 sales growth, an executive said on Thursday, after profits slumped over the first three months of the year.

Becle, which produces the popular Jose Cuervo tequilas, now forecasts annual growth in the high single digits, down from a February guidance for “high single digits to low teens.”

In an earnings call, executives said they wanted to proceed with caution.

“We just wanted to be cautious on the performance for the rest of year … on an FX neutral basis, knowing what we already know about the first quarter,” Chief Financial Officer Fernando Suarez Gerard said.

Becle posted a nearly 10% slump in first-quarter net profit this week as price increases failed to cushion negative currency exchange effects, high inflation and supply chain issues in Latin America.

Executives on Friday added it was too early to assess the impact of recent price increases in places like Mexico.

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