- Fourth-quarter sales slip by 4.5% to CLP246.69bn [US$307.8m]
- Healthier start to 2022 – nine-month sales +7.9% – brings full year in up 4% at CLP870.58bn
Viña Concha y Toro has posted a decline in sales from the closing three months of last year as the macroeconomic situation combined with price increases to hamper performance.
The 4.5% year-on-year fall in the three months to the end of December contrasted with the previous quarter’s +9.4% showing, with the Chile-based wine group noting a near-14% slide in Q4 volumes. For the full 12 months of 2022, sales closed up by 4% thanks to the healthier first three quarters.
In this week's results announcement, Concha y Toro highlighted "changes in buying patterns in several markets due to the challenging global situation of higher inflation, and adjustments to inventory by distributors in a more restrictive financial environment" during the three months to the end of December. Exports, which account for the bulk of the company's sales, were hit by a slowing of wine consumption generally compared to the corresponding period a year earlier.
At the same time, price increases, "especially" on flagship brand Casillero del Diablo, made their presence felt not only in the quarter but also for the full year.
Concha does not report its figures on an organic basis, meaning currency exchange fluctuations also play a role in the group's results.
Looking forward, the group forecast a less turbulent time in 2023 as the impact of the costs of raw materials, logistics and shipping is expected to reduce in its "intensity".
"2022 is the final year of the five-year strategy that we launched in 2018," said CEO Eduardo Guilisasti. "This has been a period of profound transformation and premiumisation of our brand portfolio, during which we have laid the foundations for future growth and competitiveness.
"Our main objective for the next three years is to guide the company toward resuming strong sales growth, both in terms of volume and value, without losing our clear focus on continuing the premiumisation of our wine portfolio."
Viña Concha y Toro's official Q4 & 2022 results announcement.
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