Revenues rose 17.7%, adding three consecutive quarters of increases, while margins improved due to effective cost control and a greater weight of premium brands.

Viña Concha y Toro increased revenues 17.7% year-on-year in the second quarter of 2024 to Ch$237,348 million, while profit rose 243.1% to Ch$21,751 million.

In the quarter, the ebitda margin recovered 740 bps to 17.1%, largely due to effective cost control and a higher weight of premium and above products to 52.8% (+70 bps).

Viña Concha y Toro’s CEO, Eduardo Guilisasti, said: “In the second quarter we continued to see a notable recovery in Viña Concha y Toro’s business, adding that it has now posted three consecutive quarters of year-on-year growth”.

He added that “the measures adopted by the company since September 2022 to face the complex global situation of the industry are already showing positive results, and demonstrate the company’s ability to adapt with agility to adverse scenarios and to take advantage of current market conditions”.

Among the main markets, the positive performance of the United States (28,4%), Brazil (28,6%) and the United Kingdom (17,5%).

Another aspect that boosted sales is the strength of its brands. Between April and June there was a remarkable performance of Casillero del Diablo and its line extensions (+24,1%), Diablo (18,3%) and its Argentinean brand Trivento (21,1%). New product launches have also been well received by consumers.

In the first half of the year, sales grew 21.6%, while the ebitda margin rose to 15.7%. Profit for the first half was up 263.4% to Ch$34,491 million.

Outlook

Viña Concha y Toro kept its outlook for 2024 unchanged. “All of the above reinforces our view that the company is poised to continue growing in sales and profitability, with double-digit revenue growth in 2024”, the CEO concluded.