Viña Concha y Toro First Quarter net profit grew 87.3%
May 04, 2021
Santiago, Chile --Viña Concha y Toro announced consolidated financial results of the first quarter of 2021, with important growth in sales, EBITDA and net profit, as well as an expansion in its margins.
Consolidated revenue increased 8.2% in the quarter, driven by an overall volume growth of 10.8% and mix improvement, which translated into higher average prices. As such, EBITDA margin expanded 310 basis points. Largely reflecting these solid operating figures, net profit grew 87.3%.
Eduardo Guilisasti, CEO of Viña Concha y Toro, highlighted: “We are very satisfied to present another quarter of strong results for Viña Concha y Toro. In the 1Q21, our financials reflect broadly the delivery of our commercial strategy, in place since 2018, with a greater premium focus on those brands and markets that have the highest potential for value and profitability growth. In the period, our operations continued to work with relative normality and in compliance with protocols established by authorities and internal measures to prevent contagion in the scenario of the pandemic.”
Sales were driven by the markets where the company has integrated distribution, such as the domestic market of Chile, the United Kingdom, USA, and other distribution offices. In the quarter, the company started to see recovery in several markets that were impacted in 2020 in the scenario of the pandemic, China and South Korea being the most relevant cases.
In this quarter, volume growth was driven by Principal and Invest brands. Casillero del Diablo and line extensions increased 35%, evidencing the brand’s leadership among global brands, recently recognized by Wine Intelligence, which ranked Casillero del Diablo second among the most powerful brands of 2021. From Argentina, Trivento Reserve continues to show strong momentum, up 49% at a global level, led by its main market, the UK. We also highlight the success of Diablo, an innovative brand launched in 2018, up 210%.
“For the coming quarters we remain working with conviction on the sustainability of these results, which reflect an attractive value proposal to consumers, based on a portfolio of powerful brands and close relations 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,” Guilisasti added.
“Finally, we want to proudly share that we recently obtained B Corp Certification, which represents an ambitious step that we have taken in our commitment to sustainability,” Guilisasti concluded.