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SaltWire's Atlantic regional weather forecast for October 26, 2023 | SaltWireMEXICO CITY - Mexican distiller Becle, the world's largest tequila producer, saw its share price dive more than 10% on Thursday after posting a deep slide in its third-quarter profit, largely due to the devaluation of its overseas earnings from a strong peso.
The morning's losses have wiped close to $830 million off the company's market value as more than a million shares changed hands. Mexico's peso strengthened some 14% to the dollar over the 12 months ending Sept. 30, causing many national companies to post lower earnings as revenues earned abroad lost exchange value.
Becle's peso-denominated earnings declined across all its regions and categories, but the volumes it sold outside of the U.S. also shrunk in what the company attributed to economic challenges in Europe and Latin America, slowing customers' liquor spending. "This is Cuervo's lowest margin since the company's IPO," analysts at Santander said in a note, adding that earnings had significantly missed forecasts"across the board".Despite a challenging quarter, executives in an earnings call said that Becle would continue its premiumization strategy to maintain and grow its market share.
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