Viña Concha y Toro announced today the results for the second quarter of the year, in which consolidated sales grew by 16.5%, operating profit increased by 71% and the operating margin reached 17.5% with an expansion of 560 bp. EBITDA increased by 56% and the 21.4% EBITDA margin reflected an expansion of 540 bp, as a result of higher sales volume, better mix, favorable exchange rate impact, and lower cost of wine. In the quarter, net income increased by 52%.
Eduardo Guilisasti, CEO of Viña Concha y Toro, highlighted that “we are very pleased to present these historical results in the second quarter of the year. In a particularly challenging period, severely affected by the global health crisis and strict containment measures adopted throughout the world, the company’s results demonstrate the strength of its business model implemented over the years, the effects of a major internal restructuring plan and its team’s extraordinary commitment.
“Undoubtedly, the measures taken to deal with the crisis and our teams’ efforts have been the fundamental pillars for this achievement. We have seen an impeccably executed harvest; the Company’s production and support areas confronted the operational restrictions imposed by the pandemic and made possible an uninterrupted supply chain. On the commercial front, our market diversification and integrated distribution model we have consolidated in recent years has given us a clear advantage in responding to double-digit demand in some of our major markets. Likewise, in this highly complex period, the advantages of the new strategy launched in 2017, promoting focus, rationalization, simplicity, and search for efficient structures, have become patent.
“The outstanding performance of our distribution offices in the UK, Brazil, Nordics, and Mexico, as well as in other Western European key markets is the result of greater focus and close and collaborative work with our clients. In those markets, sales volume reached double-digit growth rates for our priority brand categories Principal and Invest. In the USA and Canada these brands also performed well. Growth in these regions offset reduced activity in China, South America, and the Caribbean, areas where current restrictions continue to impact consumption, and where tourism is still closed or timidly reopening. Globally, export volume grew by 3.7%. Chile’s domestic market experienced notable wine sales growth in both value and volume, despite a difficult scenario marked by closure of on premise consumption venues, including our Pirque Visitor Center.
In 2Q20, consolidated sales grew by 16.5%, operating profit increased by 71% and the operating margin reached 17.5% with an expansion of 560 bp. EBITDA increased by 56% and the 21.4% EBITDA margin reflected an expansion of 540 bp, as a result of higher sales volume, better mix, favorable exchange rate impact, and lower cost of wine. In the quarter, net income increased by 52%.
“Looking ahead, we are driven by our long-term vision and confidence in the strength of the Company’s brands and our organization’s response capacity. We will continue to work with a strong commitment to our people’s safety and risk prevention, as well as providing solidarity and support to our neighboring communities.”
2Q20 Highlights
- Consolidated revenue up 16.5% to Ch$192,850 million.
- Principal and Invest brands volume up 13.4%.
- EBITDA up 56.1% to Ch$41,278 million. EBITDA margin up 540bp to 21.4%.
- Net profit up 51.6% to Ch$21,198 million. Net margin up 260bp to 11.0%.
1H20 Highlights
- Consolidated revenue up 16.1% to Ch$343,963 million.
- Principal and Invest brands volume up 13.0%.
- EBITDA up 52.7% to Ch$63,606 million. EBITDA margin up 440bp to 18.5%.
- Net profit up 50.5% to Ch$29,060 million. Net margin up 190bp to 8.4%.
