March 26th – Viña Concha y Toro announced on Thursday full year results, which showed EBITDA growth of 42% with a margin expansion of 340bp, reflecting a solid top-line execution, volume expansion, mix improvement, and favorable f/x rates. The bottom line grew 49% in 2020, reaching Ch$77,994 million, with an expansion in the margin of 220bp to 10.1%, reflecting the strong results at the operational level.
CEO Eduardo Guilisasti said “We are very pleased to present historical 2020 results for Viña Concha y Toro. In a challenging and unprecedented year, where we faced a diversity of conditions across our markets, the company’s results reflect the strengths of our integrated business model and the outcome of our new commercial strategy, that we have been executing since 2018. Certainly, these would not have been possible to achieve without the efforts and commitment of our team across all our operations and geographies.”
These strong results were driven by the premium brands portfolio, in line with the strategy, which has a focus on those brands with the highest relevance and potential for value generation. In 2020, two of the top-selling premium brands had an outstanding performance: Casillero del Diablo Reserva grew 20% in volume and Trivento Reserve increased 57%, while Bonterra, the main organic brand in USA, grew by 16%.
Regarding global sales, in 2020 the top performing markets were those where the company has a strategic focus and an integrated distribution model, which allowed to effectively implement the commercial strategy, closely working with partner customers, and promptly respond to changes in demand. The UK, Brazil, the Nordics, Mexico, and the domestic market of Chile performed extraordinary well. The US market showed a good result driven by the premium brands growth. In other markets, especially in Asia and Latin America, there were mixed trends given challenging scenarios related to the pandemic and governments’ restrictions to the consumption and sales of alcoholic drinks, diminished tourism and social gathering activities, and lockdowns, among others.
The fourth quarter of the year continued to evidence the results of the strategy, with improved sales mix and average price, that together with a disciplined cost and expenses management underpinned a 170bp EBITDA margin accretion to 19.3%. Consolidated sales grew 9%, driven by volume gains of our brands in the Principal and Invest categories, with increases of 24% and 35%, respectively. Net profit grew 40%, reflecting higher operational figures and a better non-operating profit.
“Looking forward, the Company remains fully committed to its corporate strategy as the positive results shown are encouraging and build up solid bases for our future goals”. said Guilisasti.