MEXICO CITY (Reuters) -Becle, the world’s largest tequila producer, saw it shares jump 5% on Wednesday after the company reported a first-quarter profit increase of 15% from a year earlier.
The firm, which makes the bulk of its income from tequila but also produces a range of spirits including mezcal, whiskey, and gin, attributed the net profit boost to lower input costs and exchange-rate tailwinds given the Mexican peso’s depreciation, in a report published Tuesday afternoon.
The company, also known as Cuervo because of its best-known tequila, posted earnings for the first-quarter that exceeded expectations.
“Cuervo presented a positive quarterly report, mainly supported by the exchange rate effect that offset the contraction of volumes in all regions due to the industry weakness,” Ve Por Mas analysts said in a note.
Becle stood as the top gainer on Mexico’s main stock index in morning trading.
(Reporting by Aida Pelaez-Fernandez and Noe Torres; Editing by Brendan O’Boyle and Cassandra Garrison)
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