Becke S.A.B. reports sales rose 6.4% on an underlying basis to 5.6 million cases and net sales were up 3.8% in the second quarter. Net profit in the second quarter fell 40.9%.
Net sales in Mexico increased 11.6% on an underlying basis (+11.4% reported), primarily driven by the strong volume growth, partially offset by unfavorable sales mix.
In the same period, U.S. and Canada net sales increased 2.4% on an underlying basis (-6.6% reported, primarily reflecting the non-renewal of the distribution agreement for the Cholula Food Co. and a base comparison effect resulting from the delay in billing of discounts in the U.S. from one of our large distributors that occurred during last year’s second quarter).
Net sales of the RoW region decreased by 0.1% on an underlying basis (-1.9% reported) when compared to the second quarter of 2018. Volume of Jose Cuervo increased 8.9% compared to the same period in 2018 and represented 32.0% of total volume for the second quarter of 2019.
The company’s other tequila brands represented 13.6% of total volume, with volume increasing 8.1% compared to the prior year period. Other Spirits brands represented 16.3% of total volume in the period and experienced a 4.5% increase in volume over the second quarter of 2018.
Volume of Non-alcoholic and Other represented 19.2% of total volume and volume increased 2.7% on an underlying basis (-12.6% reported compared to the prior year period primarily driven by the non-renewal of the distribution agreement for the Cholula Food Company brand in April of this year).
Volume of ready-to-drink (RTD) represented 19.0% of total volume and grew by 6.8% compared to the prior year period.