“Increased promotion activities and inflationary cost-push continue to pressure brandy margins,” notes Tan.
UOB Kay Hian analyst Llelleythan Tan has kept his “hold” call on Emperador Inc (SGX:EMI
) after the brandy and whisky group reported a set of “weak” results for the 2QFY2023 ended June 30. Tan has also lowered his target price to 45 cents from 57 cents previously.
For the three-month period, Emperador’s earnings fell by 22.9% y-o-y to 2.42 billion pesos ($57.7 million) while its revenue fell by 1.3% y-o-y to 15.5 billion pesos. The lower revenue and earnings were due to higher operating costs and a decline in earnings from the group’s brandy segment.
