EMPERADOR Inc. is earmarking P2.4 billion in capital expenditures (capex) for 2026, lower than in previous years following the completion of several major investment projects.
The spirits maker said more than half of the amount would be used for whisky operations, including the construction of warehouses and maturation facilities for the expanded Dalmore distillery, while the remainder will fund upgrades and maintenance for the brandy business.
"On capex, we set aside P2.4 billion for this year. Most of the capex will be for the whisky segment," President and CEO Glenn Manlapaz said during the company's annual stockholders' meeting on Wednesday.
The company said the reduced spending reflected the completion of capital-intensive projects, including the expansion of the Dalmore distillery in Scotland that doubled production capacity as well as sustainability initiatives such as the Jura biomass boiler and the Invergordon bioenergy center.
In the Philippines, Emperador also installed an air emissions treatment plant at its glass manufacturing facility.
Manlapaz said they were seeing encouraging developments in the brandy business, particularly locally, as well as early signs of a recovery in the global whisky market.
"We see this as a resurgence for the brandy segment," he said. "There are also developments in the international markets that are encouraging at the moment, and we expect our international brandy business to contribute more to the company in the succeeding years."
He attributed the improvement to Emperador’s efforts to offer better value and products that appeal to younger consumers.
In the whisky segment, Manlapaz said the industry was facing pressure from inflation, geopolitical conflicts and supply chain disruptions over the past three years.
"Over the past three years, the global whisky market downgraded because of [the] high cost of living brought about by geopolitical conflicts, inflation and supply chain disruptions," he said.
Despite those challenges, Emperador posted higher first-quarter whisky revenues, driven by stronger sales of premium products.
"Our first-quarter revenue for whisky was up because we did see better sales of our premium products, and we are starting to see some green shoots," Manlapaz said.
"If premium is improving, then the market is recovering, and if that happens in a while, the rarer niche market, the vintage market, will be back as well."
He said the company's whisky brands had maintained strong market positions despite industry-wide downtrading, with Jura said to have remained the leading single malt whisky in the United Kingdom, Tamnavulin ranking second and Dalmore continuing to lead the luxury single malt category in several Asian markets.
Looking ahead, Manlapaz said Emperador expected stronger demand from premium products and export markets to support growth this year.
"We see the market slowly going back to premium products, and we are indeed seeing greater demand in our export markets," he said.
The company said it had no acquisition plans in the near term but that it remained open to opportunities that align with its long-term strategy.
Emperador shares on Wednesday slipped P0.04, or 0.26 percent, to close at P15.34 each.
