Concha y Toro enjoys 53% EBITDA growth in third quarter

Chilean wine giant Concha y Toro has grown its earnings before interest, taxes, depreciation and amortisation (EBITDA) by 53% in the third quarter of the year.

Concha y Toro’s hero brand, Casillero del Diablo, is enjoying “extraordinary momentum”

The third quarter results saw Concha’s EBITDA grow by 53% to Ch$43,509 million, and it post a 340bp EBITDA margin accretion to 20.7%.

Concha’s operating profit grew by 69% to Ch$36,171m, and its operating margin expanded 410bp to 17.2%, driven in part due to favourable f/x fluctuations, which offset a higher cost of wine in the quarter. The wine giant’s net profit reached Ch$26,264m, increasing 54.4% in the quarter.

“We are very pleased to present a quarter of historical results for Viña Concha y Toro, which shows the strength of our business model, the consolidation of our 2022 strategy and reinforces our position among the leading companies in the global wine industry,” Concha’s CEO, Eduardo Guilisasti, said.

“In these challenging times for the global economy, these results underline the strength of the company through a solid top-line execution, overall volume growth, mix improvement and a higher average price,” he added.

In the last quarter, the company’s consolidated sales grew by 28%, with an increase in volume across all of its key markets, aided by the “extraordinary” momentum of its Casillero del Diablo, Trivento Reserve and Diablo brands.

At export, Concha y Toro’s volume sales rose by 19%, led by the UK, Brazil, the Nordics, Mexico, and Canada, where the firm has been able to execute its commercial strategy with success and respond to the demands of the pandemic.

In Asia, Concha’s volumes sales recovered, driven by China and South Korea, as restrictions imposed in previous quarters were eased.

In South America and the Caribbean, lockdowns, restrictions and diminished tourism continued to impact wine consumption, while in the US, volume sales grew 1.5%, reflecting a strong performance by Casillero del Diablo and Frontera.

The company is also doing well on home turf, growing its value and volume sales by 9% and 11% respectively, led by a strong performance by its premium brands.

“Looking forward, even though the global health and economic scenario continues to be marked by uncertainty, we remain confident in our vision and results, and will continue to work with a strong commitment to our people’s safety and risk prevention”, Guilisasti said.