- Flat sales (+0.8%) in three months to end of June, coming in at MXN11.15bn (US$609.9m)
- Jose Cuervo portfolio slips 4.2% in Q2 to MXN3.91bn
- ‘US & Canada’ reporting region rises 14.5%, Mexico declines by 10.7%
Proximo Spirits has seen a repeat of its first-quarter sales performance in Q2, with sales holding steady versus the year-prior.
Three months after posting a 1% top-line lift from the three months to the end of March, the Jose Cuervo brand owner has booked a quarterly increase of just 0.8% in the second quarter. The company noted “sluggish” consumption levels for spirits generally during the first half of 2024, along with the well-recognised macroeconomic issues impacting the industry as a whole.
The flagship tequila mark, which accounts for just over a third of total sales, slipped by just over 4% on the corresponding three months a year ago, an improvement on Q1’s 9.4% decline. However, the ‘other tequilas’ unit, comprising higher-end brands in the portfolio, climbed 8.6% by value on volumes increase of 5.5%.
Over in ‘other spirits’, home to the likes of Bushmills Irish whiskey, Proximo appeared to sell less product for more value as well; the unit’s 2.4% sales rise came from declining volumes of 3.2%.
The dreaded ‘destocking’ term was referenced for the company’s domestic market, Mexico, where Q2 volumes and value sales were both down by double digits. Similarly, “high inventory levels” in the ‘Rest of the World’ reporting region “led to a notable disparity between shipments and depletions”, resulting in volumes sliding by 16.1% and value sales down almost 11% in the quarter.
The largest reporting region of the US & Canada, meanwhile, was credited with a strong tequila category for driving the +14.5% sales jump.
Elsewhere in the results announcement this week, Proximo noted an accident at its La Rojeña facility in the town of Tequila on Tuesday. “The company is in the process of assessing the damages and is working in collaboration with the authorities to address and investigate the causes of the incident,” the group said.
