CHILE: Concha y Toro Q2 props up first-half
Vina Concha y Toro has rescued its first half performance from a troublesome start, with healthy figures across the board in the second quarter of the year.
The Chile-based wine producer and exporter said yesterday (6 August) that net profit for the three months to the end of June registered an 18.5% increase on the same period a year earlier, coming in at CLP11.33bn (US$21.5m). Sales were up less impressively, by 3.4% to CLP76.86bn, with operating profit lifting by 2.8% to CLP13.81bn.
In April, Concha y Toro posted a 7.6% slide in net profit for its first quarter, coming in at CLP5.78bn (US$12.7m). Sales followed suit in Q1, albeit less markedly, slipping by 1.9% to CLP57.63bn. Operating profit was also down, by 3% to CLP8.61bn.
Despite the slow start to the year, the company saw sales in the first half of the year level off, up by 1% to CLP135.87bn, with net profit climbing by 7.9% to CLP17.11bn. Operating profit was also flat, up by 0.5% to CLP22.63bn.
"During this period, the company has implemented price increases in the domestic and export markets with the aim of sustaining overall margins and profitability," said Conch y Toro's CEO, Eduardo Guilisasti. "This has impacted volume growth, mainly in the domestic market, as exports continue their strong momentum."
While domestic market sales fell by 1.1% in the quarter, following a 6.1% increase in the average price offset by a 6.8% decrease in volume, Conch y Toro highlighted the continuing strong performance of its exports. Sales abroad were up in value terms by 28.2% in Q2, thanks to "a better sales mix driven by growth in the premium and varietal categories and the positive results of the company's subsidiaries".
The year ending in an odd number can mean only one thing. In June, the wine sector will be migrating en masse to Bordeaux for Vinexpo. Chris Mercer spoke with Xavier de Eizaguirre, managing director o...
Not surprisingly perhaps it is the effects of the global economic downturn that have dominated the wine pages of just-drinks over the past year. Richard Woodard reviews a difficult year for the intern...
Central European Distribution Organisation, the wine and spirits group, has said it has signed a deal to refinance its short-term debt, enabling it to continue investing in key growth markets....
Viña Cono Sur, a subsidiary of wine group Concha y Toro, has bought Chile's leading producer of Fairtrade certified wine, Viña Los Robles....
- The category today - Scotch Whisky I
- Today's Market Trends - Scotch Whisky II
- Tomorrow's Market Trends - Scotch Whisky III
- Key Brands Performance - Scotch Whisky IV
- Category Innovations - Scotch Whisky VII
- Beam Suntory names CFO, makes structural changes
- Analysts clash over AB InBev SAB Brexit impact
- Diageo to accept US$1m South Korea fine
- Pernod switches Travel Retail Europe op's director
- AB InBev unveils Stella Artois three-packs
- Global Scotch whisky insights - market forecasts, product innovation and consumer trends
- Global RTD insights - market forecasts, product innovation and consumer trends
- Global travel retail insights - market forecasts, product innovation and consumer trends
- Global non-Scotch whiskies insights - market forecasts, product innovation and consumer trends
- Consumer and Market Insights: Wine Market in China