August 4th – Viña Concha y Toro announced the results for the second quarter of 2021, in which consolidated sales grew by 9.1%, EBITDA increased by 2.5% and net profit grew 8.6%. In this period, consolidated volume increased 4.8% together with an increase in the average price as a result of a better mix.
Eduardo Guilisasti, CEO of Viña Concha y Toro, highlighted that “we are very pleased to present again a strong quarter for Viña Concha y Toro. In the 2Q21, the 16.1% EBIT margin obtained is fully aligned with the targets that our commercial strategy has set towards 2022.”
Sales were driven by double-digit growth rates in volume and value of our priority brands, Principal and Invest. Consequently, our sales mix has improved, with the premium categories reaching 49% of sales value. A solid 19% volume and value growth of Principal and Invest categories evidences the success of our commercial focus, reoriented to the high-end segment, and the high level of awareness of these brands across all of our markets.
At our export markets, in line with our expectations, the recovery of sales in those markets that were highly impacted during 2020 due to the pandemic allowed us to sustain growth in spite of the lower performance of such markets with high comparison bases, given their outstanding growth in 2020. Our top performing export markets were Asia, Central America, the Caribbean, and South America.
In the domestic market of Chile, sales reflect the strong momentum of our premium brands, of both wine and beer, driving an important advance in terms of mix and profitability. In the United States, sales of Fetzer Vineyards were driven by premium and ultra-premium brands, within the context of positive growth trends for the these categories in the US market. In China, sales recorded important recovery from 2020, in hand with a more normalized consumption scenario, together with the further step that our recently incorporated subsidiary has allowed us to take towards commercial integration.”
In spite of a challenging high comparison base, unfavorable f/x fluctuation and a higher cost of wine, our operational figures continued to grow, reflecting the deliveries of our strategy, ongoing efficiencies and focused growth of the most profitable categories. As such, consolidated revenue increased 9.1% in the quarter, EBITDA grew 2.5% and net income grew 8.6%. In the quarter, overall volume increased 4.8% and average price increased on mix improvement.
Guilisasti explained: “Looking forward, we remain confident in the sustainability of our results, based on the improvement of the quality of our portfolio and the relations that we maintain with retailers and distributors. In the same manner, we continue to work with all the precautions needed to protect our people and their families during the sanitary crisis, expecting a favorable evolution in coming months.”
