LISTED liquor producer Emperador, Inc. has re-entered the FTSE Global Equity Index Series (GEIS) as a Small Cap constituent, as the company separately agreed to settle part of its equity-linked securities (ELS) through a P1.4-billion cash payment instead of issuing common shares.
“EMI is the only Philippine company newly added to the FTSE Small Cap segment in this review,” the company said in a statement on Monday.
Emperador’s inclusion followed FTSE’s semiannual review of its Asia-Pacific regional index excluding Japan and China, announced on Aug. 21, and places the company within the relevant FTSE Small Cap and All Cap benchmark universes.
Emperador said it remains focused on broadening its institutional investor base, improving market liquidity, and strengthening its investable market capitalization over time.
The company has a market capitalization of about $3.8 billion.
In a separate disclosure on Monday, Emperador said it and Arran Investment Pte. Ltd. agreed to settle 193.1 million Tranche 2 equity-linked securities shares through a P1.4-billion cash payment instead of converting them into common shares.
The remaining 281.9 million Tranche 2 ELS shares remain subject to conversion, with the conversion period previously extended to March 31, 2027.
As of June 30, Emperador had an outstanding ELS balance of P3.44 billion representing 475 million Tranche 2 shares that were to be issued to Arran within the agreed conversion period.
The ELS instrument bears variable interest equal to the dividend rate applied to the number of conversion shares. Variable interest amounted to P64.2 million in the first half of 2026, down from P90.2 million a year earlier.
Emperador’s attributable net income fell by 15.3% to P1.77 billion in the second quarter from P2.09 billion a year earlier, even as revenues and other income increased by 8.3% to P16.24 billion from P14.99 billion.
Second-quarter sales of goods and services rose by 9% year on year to P15.94 billion, while gross profit increased by 16.9% to P5.25 billion. Gross profit margin improved to 32.9% from 30.8%.
The company said second-quarter operating expenses rose by 36% year on year and 48% quarter on quarter as it increased commercial and operational capacity to support demand.
For the first half, attributable net income declined by 6% to P3.71 billion from P3.94 billion a year earlier, while net profit fell by 6.4% to P3.74 billion from P3.99 billion.
First-half revenues and other income rose by 5% to P29.60 billion from P28.20 billion, while sales of goods and services increased by 7.8% to P28.81 billion from P26.73 billion. Gross profit climbed by 16.6% to P9.47 billion, with gross profit margin improving to 32.9% from 30.4%.
Emperador attributed the lower first-half profit to higher operating, financing, and tax expenses, which offset stronger sales, an improved product and market mix, and cost efficiencies. Consolidated operating expenses rose by 14% year on year, while interest expense increased to P912 million from P808.1 million.
The brandy segment posted first-half external revenues and other income of P19.20 billion, up by 3.9% from P18.47 billion, while the Scotch whisky segment recorded P10.40 billion, up by 6.9% from P9.73 billion.
Emperador had P182.80 billion in total assets as of June 30, up from P178.28 billion at the end of 2025. Total liabilities stood at P70.24 billion, while total equity increased to P112.56 billion from P108.13 billion.
Interest-bearing loans totaled P42.97 billion as of June 30, up from P41.98 billion at end-2025, while cash and cash equivalents stood at P9.58 billion.
Emperador, a subsidiary of Alliance Global Group, Inc., operates through its brandy and Scotch whisky segments. Its shares are listed on the Philippine Stock Exchange and secondarily listed on the Singapore Exchange Securities Trading Ltd.
On Monday, Emperador shares rose by 64 centavos, or 4.26%, to close at P15.66 apiece. — Alexandria Grace C. Magno
