Viña Concha y Toro sees sales soar in Q1 - results data

Three-month sales jump by 26.4% on a reported basis, to CLP206.17bn (US$217.2m)
Casillero del Diablo sales up by a third, Frontera leaps 91.5%
Wine exports up 33.9% in value during three months to end of March on 13.9% volumes increase

The 26.4% rise in sales from the three months to the end of March builds on Q4’s reversal of a downward slide in the group’s top line throughout most of 2023. Noting the decrease in inventory levels last year, Concha said this week that its latest figures benefited from a near-9% volumes rise as well as “average year-on-year price increases of 16%”.

Editor’s note: Concha y Toro presents its results in reported terms rather than organic, meaning ForEx fluctuations are included.

Brands-wise, flagship Casillero del Diablo enjoyed a 33.2% value rise in Q1, with Argentina’s Trivento Reserve up 36.7%. Overshadowing the pair, however, was Frontera, with the multi-varietal portfolio delivering a year-on-year increase in sales value of 91.5%. Frontera’s success was most notably felt in the US, according to Concha, where a “rise in non-premium (wine) categories” was observed in the period.

Turning to markets and while domestic wine sales had price rises to thank for their performance – +5.8% on -2.7% volumes in Chile – exports with the exception of the US climbed by just over a third thanks in large part to the UK (which accounted for 29.7% of total group sales). The country is in “continued recovery” on the wine front, the company said.

Finally, in the US, where Concha owns the Bonterra Organic Estates business, sales by both value and volume were almost at parity, around +35% each. “The 2023 base (in the US) was affected by industry-wide consumption adjustments, with lower volumes, particularly in segments under US$10, as well as adjustments in the stocks of the leading distributors in a more restrictive financial context and interest rate hikes,” Concha noted.

“Although the recovery in 1Q24 occurs in this context, it does not necessarily guarantee that the market has recovered and that we can expect growth at this level in the coming quarters.”

“Despite the ongoing global challenges faced by the wine and spirits industry, it is now evident that Viña Concha y Toro is a transformed company,” said CEO Eduardo Guilisasti. “We have successfully anticipated and implemented the required adjustments, permitting us to become a more … consumer-friendly company, as reflected in our results.

“Innovation has been positioned as the primary driving force for growth within our company. We have witnessed the warm reception of our new product launches by our consumers, and their response has further strengthened our positive outlook for 2024.”