Stock Markets April 29, 2026 06:15 PM

Becle Posts Sharp First-Quarter Profit Decline as U.S., Canadian Sales Falter

Distribution overhaul in the United States and weaker North American volumes drive a 67% drop in quarterly net income

By Derek Hwang BCCLF
Becle Posts Sharp First-Quarter Profit Decline as U.S., Canadian Sales Falter
BCCLF

Becle, the world’s largest tequila producer, reported a 67% fall in first-quarter net profit as revenues dropped 23% and volumes contracted sharply in its largest North American markets. Management pointed to strategic discipline during a difficult industry environment and a U.S. distribution restructuring that weighed on sales in the United States and Canada.

Key Points

  • Becle recorded a 67% decline in first-quarter net profit to 388.2 million pesos while revenues fell 23% to 7.40 billion pesos.
  • Total volumes decreased 13% in the quarter, with a 24% slump in the United States and Canada attributed in part to a major U.S. distribution restructuring.
  • Analysts expect full-year revenues of 40.39 billion pesos for 2026 (down 6% from 2025) and forecast profits of 5.31 billion pesos, a projected 39% decline from 2025 levels; results suggest pressure on the beverage and distribution sectors.

Becle, the Mexican spirits group that markets Jose Cuervo family tequilas and other brands, disclosed on Wednesday that net profit plunged 67% in the first quarter of 2026 amid a notable sales slowdown in its principal North American markets.

Net profit for the three-month period totaled 388.2 million Mexican pesos ($21.7 million), while consolidated revenues fell 23% to 7.40 billion pesos. Analysts polled by LSEG had been looking for 838.5 million pesos of net profit and revenues of 7.79 billion pesos, leaving the company below consensus on both measures.

Total volumes for Becle declined 13% in the quarter. The contraction was concentrated in the United States and Canada, where volumes fell 24% - a deterioration the company attributed in part to a major distribution restructuring underway in the U.S. market. Management noted that volumes rose in all other markets outside North America.

In a statement, Becle’s management said the company spent the first quarter emphasizing discipline and strategic priorities, and that these actions should leave the business better positioned over the longer term despite what it called a challenging and contracting industry environment.

Becle derives the bulk of its sales from North America, with more than half typically generated in the United States and Canada and roughly a quarter in Mexico. The company’s earlier warning of a difficult 2026 was linked to its decision to restructure the U.S. distribution network after ending its partnership with major national distributor RNDC, which itself is undergoing a significant selloff.

Analysts at Itau BBA last week described 2026 as likely to be "harsh," forecasting weaker volumes on the premise that consumers globally are drinking less alcohol, though they also observed that Becle’s performance has been stronger than some of its peers.

Looking ahead for the full year, analysts polled by LSEG expect Becle’s revenues to reach 40.39 billion pesos in 2026, a decline of about 6% from 43.08 billion in 2025. Those forecasts imply an anticipated drop in annual profit to 5.31 billion pesos, down 39% from 8.65 billion the prior year.

For the first quarter specifically, Becle reported that net sales and volumes decreased across every product segment. The company’s quarterly results underscore the immediate impact of its distribution changes and softer demand in its most important markets.

Industry import figures included in the company’s reporting context show that the United States imported $3.59 billion worth of tequila in 2025, a 32% decline from the previous year, although tequila imports still exceeded combined imports of gin, rum and vodka for that period.

Foreign exchange reference: $1 = 17.9252 Mexican pesos at end-March.


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Risks

  • Ongoing U.S. distribution restructuring and the end of the RNDC partnership may continue to disrupt sales and logistics in Becle’s largest market - affecting distribution and retail sectors.
  • Weaker consumer demand for alcohol globally could suppress volumes across product segments, posing downside risk to revenue and profitability in the beverage and consumer discretionary sectors.
  • Forecasts showing lower revenues and profits for 2026 point to financial performance uncertainty that could affect investor sentiment and capital markets exposure for the company.

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