MEXICO CITY, April 24 (Reuters) -

Mexico's Becle, the world's largest tequila producer, on

Wednesday posted a 18% fall in first-quarter net profit from a

year earlier, still landing above analyst forecasts, as it sold

fewer alcoholic drinks and was hit by foreign exchange effects.

Profits for the first three months of 2024 landed just

over 1 billion pesos ($61 million), the distiller said, as core

earnings slipped 1% from revenues down 7% to 8.96 billion pesos.

The company nevertheless ended the quarter above the 900

million peso profit forecast by analysts polled by LSEG, even

though sales fell beneath their average estimate of 9.29 billion

pesos.

"We entered 2024 with momentum despite challenging

macroeconomic conditions and slowing consumption in several of

our markets," Becle said in a statement, adding that its

strategy so sell more premium-priced liquors was having positive

results.

Becle sold 5% more volumes in its largest market, the

United States and Canada, while in Mexico volumes slipped 10%

and elsewhere they fell 23%, as customers bought less tequilas

and spirits but more non-alcoholic drinks.

Jose Cuervo and other tequilas make up the bulk of

Becle's sales, though it also sells other liquors such as Kraken

rum and Boodles gin. Non-alcoholic drinks made up just 3% of

sales this quarter.

Becle said sales in North America were further hit by

the strong Mexican peso, which strengthened 8% against the U.S.

dollar by the end of March, diluting income from abroad.