{"id":41674,"date":"2022-05-16T10:47:47","date_gmt":"2022-05-16T14:47:47","guid":{"rendered":"https:\/\/vinacyt.com\/?p=41674"},"modified":"2022-06-14T10:54:55","modified_gmt":"2022-06-14T14:54:55","slug":"vina-concha-y-toro-increases-sales-and-profits-in-first-quarter-despite-challenging-global-scenario","status":"publish","type":"post","link":"https:\/\/vinacyt.com\/en\/noticia\/excellence\/vina-concha-y-toro-increases-sales-and-profits-in-first-quarter-despite-challenging-global-scenario\/","title":{"rendered":"Vi\u00f1a Concha y Toro increases sales and profits in first quarter despite challenging global scenario"},"content":{"rendered":"<p><em><strong>In the complex current global scenario, the strength of the company\u2019s brands, cost control measures, and effective strategy to maintain financial stability enabled it to record a 9.6% increase in Ebitda.<\/strong><\/em><\/p>\n<p>Global inflation not seen in decades, rising raw material costs, and supply chain disruption have been key factors in the global economy during the first quarter of 2022. Against this backdrop, Vi\u00f1a Concha y Toro achieved an 8.9% increase in sales and a 20% increase in profits.<\/p>\n<p>\u201cWe believe that the company\u2019s solid fundamentals, together with the strength of its brand portfolio, market diversification, and distribution structure have made the difference in these difficult times, driving growth and profitability\u201d, said <strong>Eduardo Guilisasti, CEO of Vi\u00f1a Concha y Toro<\/strong>.<\/p>\n<p>\u201cIn this scenario, the company has implemented an effective strategy to maintain its financial stability, price increases, and stringent cost control measures\u201d, he added.<\/p>\n<p>Consolidated sales reached Ch$178,055 million in the first quarter, driven by an increase in average prices in the sales mix and a favorable exchange rate, which offset an 8.3% decrease in sales volume.<\/p>\n<p>The price increases implemented by the company are in response to rising costs for dry goods, labor, and shipping, among other areas. This decision resulted in an increase in average prices in the sales mix for export markets (+6.7%), wine sales in Chile (+14.1%), and in the United States (+9.6%).<\/p>\n<p>These factors were also key in the EBITDA margin reaching 18.0% in the first quarter of 2022, with EBITDA growing by 9.7% to Ch$32,050 million. Net income reached Ch$17,677 million in the quarter.<\/p>\n<p>The 8.3% decrease in sales volume is accounted for primarily by reduced activity in the United Kingdom and Nordic countries, from a high base due to the evolution of the pandemic and lockdowns during the first quarter of 2021. Volumes were also affected by the deliberate withdrawal of non-premium brands\u2014especially in China\u2014and disruptions to maritime transport.<\/p>\n<p><strong>Brand strength<\/strong><\/p>\n<p>Although sales of key brands in the Principal (Casillero del Diablo and its line extensions) and Invest (Don Melchor, Diablo, Marques de Casa Concha, Cono Sur Bicicleta, Cono Sur Org\u00e1nico, Trivento Golden Reserve, Trivento Reserve, 1000 Stories and Bonterra) categories fell by 11.8% in terms of volume, they increased by 7.8% in terms of value.<\/p>\n<p>Consequently, the company maintained a stable sales mix compared to the first quarter of 2021, with Principal and Invest premium categories accounting for half of its revenue (49.9%).<\/p>\n<p><strong>Markets<\/strong><\/p>\n<p>With regard to markets, Latin America stood out with robust sales growth led by Mexico, which saw an increase of 33.4% in terms of value and 19.4% in terms of volume driven by the Invest category (+230% in terms of volume). Sales in Brazil grew by 18% in terms of value, with an average price increase of 8.8% in US dollars and a 2.5% reduction in volume. Growth in Brazil was led by the Protect category and the Super &amp; Ultra Premium portfolio (+38.4% y +88.6% in terms of value, respectively).<\/p>\n<p>In the domestic Chilean market, wine sales grew by 2.1%, driven by a 14.1% increase in average prices in the sales mix and strong growth of Invest category brands in terms of volume (+32.7%). This growth was achieved despite a 10.5% decrease in sales volume due to the reduction in mass-market wine sales, a segment which is not a key focus for the company.<\/p>\n<p>In fact, the weighting of Principal and Invest brands in overall sales in Chile increased from 33% in the first quarter of 2021 to 38.4% in the same quarter of 2022.<\/p>\n<p>The Premium Beer &amp; Spirits category also continued to perform strongly, with sales in Chile increasing by 25.2% in terms of volume and 36.1% in terms of value. This growth was led by sales of Miller and Kross beer, as well as Pisco Diablo, among other brands.<\/p>\n<p><strong>Outlook<\/strong><\/p>\n<p>\u201cIn the coming months, we expect that the prevailing global conditions will continue to put pressure on consumption, costs, and supply chains\u201d, said Eduardo Guilisasti.<\/p>\n<p>However, the company remains confident in its capacity to overcome this scenario. \u201cTogether with our desire for a positive evolution of the pandemic and resolution of the geopolitical conflict in Eastern Europe, we will maintain a high degree of flexibility in order to adapt to changing conditions and find new business opportunities to end 2022 as an even stronger company\u201d, <strong>concluded Eduardo Guilisasti.<\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"<p>In the complex current global scenario, the strength of the company\u2019s brands, cost control measures, and effective strategy to maintain financial stability enabled it to record a 9.6% increase in Ebitda. Global inflation not seen in decades, rising raw material costs, and supply chain disruption have been key factors in the global economy during the [&hellip;]<\/p>\n","protected":false},"author":6,"featured_media":41675,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[80],"tags":[],"class_list":["post-41674","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-excellence"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.4 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Vi\u00f1a Concha y Toro increases sales and profits in first quarter despite challenging global scenario - Vi\u00f1a Concha y Toro<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/vinacyt.com\/en\/noticia\/excellence\/vina-concha-y-toro-increases-sales-and-profits-in-first-quarter-despite-challenging-global-scenario\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Vi\u00f1a Concha y Toro increases sales and profits in first quarter despite challenging global scenario - Vi\u00f1a Concha y Toro\" \/>\n<meta property=\"og:description\" content=\"In the complex current global scenario, the strength of the company\u2019s brands, cost control measures, and effective strategy to maintain financial stability enabled it to record a 9.6% increase in Ebitda. Global inflation not seen in decades, rising raw material costs, and supply chain disruption have been key factors in the global economy during the [&hellip;]\" \/>\n<meta property=\"og:url\" content=\"https:\/\/vinacyt.com\/en\/noticia\/excellence\/vina-concha-y-toro-increases-sales-and-profits-in-first-quarter-despite-challenging-global-scenario\/\" \/>\n<meta property=\"og:site_name\" content=\"Vi\u00f1a Concha y Toro\" \/>\n<meta property=\"article:published_time\" content=\"2022-05-16T14:47:47+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2022-06-14T14:54:55+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/vinacyt.com\/content\/uploads\/2022\/06\/barrica-960.png\" \/>\n\t<meta property=\"og:image:width\" content=\"960\" \/>\n\t<meta property=\"og:image:height\" content=\"540\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/png\" \/>\n<meta name=\"author\" content=\"Natalia Gonz\u00e1lez\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Natalia Gonz\u00e1lez\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"4 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\\\/\\\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\\\/\\\/vinacyt.com\\\/en\\\/noticia\\\/excellence\\\/vina-concha-y-toro-increases-sales-and-profits-in-first-quarter-despite-challenging-global-scenario\\\/#article\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/vinacyt.com\\\/en\\\/noticia\\\/excellence\\\/vina-concha-y-toro-increases-sales-and-profits-in-first-quarter-despite-challenging-global-scenario\\\/\"},\"author\":{\"name\":\"Natalia Gonz\u00e1lez\",\"@id\":\"https:\\\/\\\/vinacyt.com\\\/en\\\/#\\\/schema\\\/person\\\/f5a48fd35f8dea0345c3996f294bc715\"},\"headline\":\"Vi\u00f1a Concha y Toro increases sales and profits in first quarter despite challenging global scenario\",\"datePublished\":\"2022-05-16T14:47:47+00:00\",\"dateModified\":\"2022-06-14T14:54:55+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\\\/\\\/vinacyt.com\\\/en\\\/noticia\\\/excellence\\\/vina-concha-y-toro-increases-sales-and-profits-in-first-quarter-despite-challenging-global-scenario\\\/\"},\"wordCount\":709,\"image\":{\"@id\":\"https:\\\/\\\/vinacyt.com\\\/en\\\/noticia\\\/excellence\\\/vina-concha-y-toro-increases-sales-and-profits-in-first-quarter-despite-challenging-global-scenario\\\/#primaryimage\"},\"thumbnailUrl\":\"https:\\\/\\\/vinacyt.com\\\/content\\\/uploads\\\/2022\\\/06\\\/barrica-960.png\",\"articleSection\":[\"Excellence\"],\"inLanguage\":\"en-US\"},{\"@type\":\"WebPage\",\"@id\":\"https:\\\/\\\/vinacyt.com\\\/en\\\/noticia\\\/excellence\\\/vina-concha-y-toro-increases-sales-and-profits-in-first-quarter-despite-challenging-global-scenario\\\/\",\"url\":\"https:\\\/\\\/vinacyt.com\\\/en\\\/noticia\\\/excellence\\\/vina-concha-y-toro-increases-sales-and-profits-in-first-quarter-despite-challenging-global-scenario\\\/\",\"name\":\"Vi\u00f1a Concha y Toro increases sales and profits in first quarter despite challenging global scenario - 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