Becle, world's largest tequila maker, posts close to fivefold profit jump

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By Sarah MorlandMexico's Becle BMV:CUERVO, the world's largest tequila producer, on Wednesday posted a nearly fivefold jump in its third quarter profit, surpassing forecasts, as sales surged in all regions barring the U.S. and Canada.Becle, which makes the bulk of its income from Jose Cuervo family tequilas as well as a range of mezcals, vodkas, gins and whiskeys, said in a statement it had delivered solid results and further strengthened its financial position, "despite continued volatility in the global spirits industry." Profits for July through September hit 4.13 billion pesos ($225 million), well above the 1.27 billion forecast of analysts polled by LSEG, from revenues that held steady at 10.92 billion - broadly in line with analysts' 10.95 billion estimate. Profits were helped by a stronger peso that helped reduce its dollar-denominated debt exposure.While Becle shot up the volumes it sold across Mexico and most of its international markets by close to 20% compared to a year earlier, volumes declined 6% in the United States and Canada - where it typically makes around 60% of sales.Mexico's spirits sector, which relies heavily on exports to the United States, has been rattled this year by a series of tariff threats from Washington, hitting small-scale distillers the hardest.Most industries in Latin America's No. 2 economy have nevertheless been spared the brunt of U.S. tariffs thanks to a free trade pact between the three countries, but this is up for review next year.Last year, U.S. imported $5.3 billion of tequila, according to the U.S. Distilled Spirits Council, up more than 14% in a year and surpassing all its whiskey, gin, rum, brandy and vodka imports combined.($1 = 18.3147 Mexican pesos at end-September)

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