Concha y Toro reports strong sales and profit growth in Q2

Leading Chilean wine producer Concha y Toro has reported that Q2 consolidated sales grew 16.5% in difficult trading conditions.

The Casillero del Diabo and Cono Sur producer saw operating profit increase 71% and EBITDA rose 56% courtesy of improved operating margins

Concha y Toro, which also has production operations in Argentina and California, said that net income increase by 52% in the second quarter of 2020.

Chief executive Eduardo Guilisasti said: “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.”