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News
Strong growth in Casillero and Cono Sur boosts CYT UK
Strong sales of Cono Sur and Casillero del Diablo helped boost UK sales of Concha Y Toro UK, the company has reported – but operating profits fell 6.6%.
The UK arm of the Chilean wine company saw sales rise nearly 5% (4.7%) during 2015 to £129.2 million, with volumes also up 3% in the year to 31 December 2015, to 6.7m 9L cases, according to records filed at Companies House.
Off-trade sales of Chilean wine grew 4.1% during the period, the company’s strategic report noted, but Concha y Toro’s flagship brand Casillero del Diablo grew well ahead of the market, up 18.6%, with Cono Sur, a subsidiary brand owned by parent company Vina Concha y Toro S.A, rising 31%. This was set against an overall decline in the wine market of -1.1%.
The strong results of these brands boosted the company’s market share of Chilean wine in the UK from 56.3% to 61.3%, it said, with its share of Argentinian wine, also growing from 20% to more than 30%. Its Argentinian wine brands include Bodegas Trivento.
“These results continue to be consistent with the company’s strategy of delivery growth focusing on its sales mix rather than solely on volumes, “ the company report said. “Having grown in all sector of the UK licensed drinks trade, the directors are confident that Concha y Toro brands will be able to continue their growth on the back of a very well established distribution base, “ it said.
Although gross profits were up by £6.34 million, operating profits fell to £3.6 million, hit by the combination of a rise in admin costs and a fall in marketing income from group companies, representing a 6.61% fall from £3.8million in 2014.
Overall profits were down 3.27% to £2.876 million, it reported.
The directors also noted the impact of the Brexit vote on foreign exchange and that this was likely to boost uncertainty, however it noted the risk for Concha y Toro UK has been “mitigated” by the parent company, with all invoices from Chile being raised in Sterling.
Parent company Concha Y Toro reported strong results in the second quarter of the year, with profits up 32.2% to Ch$13,248 in Q2 of 2016, and sales up 12% by value and 8% by volume.