Concha y Toro net profits increased 48.6% in 2020

26 March, 2021

Leading Chilean wine producer Concha y Toro increased net profit by 48.6% to Ch$77,994 million (US$107.4 million) in 2020.

The Casillero del Diablo and Cono Sur producer saw consolidated revenue increase 17.1% last year to reach Ch$769,067 million (US$1.06 billion).

EBITDA was up 42% as the margin increased 19.3%, resulting in soaring net profits for the group.

Chief executive Eduardo Guilisasti Gana said: “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.”

Sales increased by 9.9% by value year-on-year in the domestic market, and 5.3% by volume, reflecting a 4.4% increase in the average sales price. The domestic market accounted for 11% of the group’s total sales.

Export sales increased by 17.6% in value and 4.9% in volume, with the UK, Brazil, Nordics and Mexico highlighted as star performers. Europe is the main sales region, and sales volume increased 15% there, driven by the performance of Casillero Del Diablo, Cono Sur and Argentinean brand Trivento in the UK market. The UK team has just launched a Tempranillo from Spain under the Casillero del Diablo brand.

Sales were up 19.7% in the USA, which makes up 1.5% of CyT’s global sales. In Asia, volume declined 20%, mainly due to a 46% contraction in China, brough about by Covid-19 lockdowns. Volume sales in Africa and the Middle East were down by 9%.

The Chilean peso depreciated 12.9% against the euro, 12.7% against the US dollar, 12.7% against the Swedish krone, 11.7% against pound sterling and 10.3% against the Canadian dollar. A weaker peso should continue to make Chile an attractive option for international buyers going forward.

“Regarding our global sales, in 2020 our top performing markets were those where the company has a strategic focus and an integrated distribution model, which allowed us to effectively implement our commercial strategy, closely working with our partner customers, and promptly respond to changes in demand,” said Guilisasti. “The UK, Brazil, the Nordics, Mexico, and the domestic market of Chile performed extraordinary well.

“And in the USA, our key premium brands had a positive performance. In other markets, especially in Asia and Latin America, we saw 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.”

CyT finished the year with Q4 net profit up 40.1% year-on-year and EBITDA increased 42% compared to the same period in 2019.

“The fourth quarter of the year continued to evidence the results of our 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%,” added Guilisasti. “Consolidated sales grew 9%, driven by volume gains of our brands in the principal and invest categories, with increases of 24% and 35%, respectively

“The company also recorded solid sales growth at the non-wine segment led by the premium beer. 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.”





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Nick Strangeway

Hacha leads by example

Back in 2002 celebrity chef Jamie Oliver launched Fifteen, a restaurant made up of a team of trainee chefs from underprivileged backgrounds.

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