GLOBAL brandy and whisky maker Emperador Inc. of the Andrew Tan-led Alliance Global Group Inc. (AGI) saw first-half (H1) net income drop 19 percent to P3.8 billion, from P4.7 billion a year earlier, as sales dipped amid tougher competition.

First-half revenue likewise fell by 7.7 percent to P28.6 billion from P31 billion last year, Emperador told the stock exchange filing on Tuesday.

For the second quarter, net profit dropped 12.5 percent to P2.1 billion while revenues were slightly higher at P15.5 billion from P15.1 billion. Quarter on quarter, however, sales grew at a faster pace of 18.3 percent from P13.1 billion.

"There are signs that consumer confidence is returning globally," the company said, adding that its business "remained resilient" because of its diversified portfolio in whisky and brandy, and its wide distribution covering more than 100 markets.

While it saw improving markets in Asia, Europe and Latin America, Emperador noted that the Philippine market remained challenging due to the influx of cheap products.

To address this challenge, the company said it would be pivoting toward a more competitive "premiumization strategy."

"The fundamentals of the company are intact, and the long-term trajectory is still on track. Once global economies improve and consumer demand for premium and luxury products returns, our performance will see new heights," said Winston Co, Emperador president.

As the company marks its 150th anniversary this year, Emperador will be pushing its sherry cask collection and will also be expanding its Dalmore whisky distillery in Scotland, funded partly by a capital expenditure for the year of P6.5 billion.

Emperador claimed that its whisky segment "continued to perform better than the industry in many markets" while its single malt portfolio — with brands such as The Dalmore, Jura and Tamnavulin — in the top 15 by volume.

On Wednesday, Emperador shares fell by 2 centavos, or 0.11 percent, to P18.58 each while the share price of its parent AGI rose 3.89 percent to P9.09.