Recovery continues for Viña Concha y Toro with double-digit 2024 in view - results data

Second-quarter sales – three months to the end of June – leap 17.7% on reported basis to CLP237.35bn (US$248.8m)
Half-year top-line increases 21.6% to CLP443.52bn
Volumes up single digits; +2% in Q2, +5.1% in H1
Casillero del Diablo sees quarterly sales climb 22.2%

Viña Concha y Toro has posted another quarter of double-digit sales growth in a period the company has described as a “recovery” year.

The near-18% increase in the three months to the end of June – Concha’s third consecutive quarter of growth – follows Q1’s even-more-impressive 26% year-on-year jump. Subsequently, the first half of this year was up by approaching 22% on the corresponding six months of 2023.

Concha’s results announcements detail the company’s sales performance in reported terms, meaning any currency fluctuations are included in the figures.

While admitting that the global context “remains challenging for the wine industry”, Concha also noted a “partial rebound in global wine consumption” during the second quarter. Export sales – which does not include the US – were up 18.5% on a 3% volumes lift at a time when the company also “implemented measures to address the challenge of reduced stock levels of finished products from distributors and leading retailers”.

Japan was a standout market, where sales jumped by almost a quarter, although challenging macroeconomic conditions in the likes of China and South Korea pulled the ‘Asia Pacific’ region down by just under 10%.

Over in the US, where Concha owns the former Fetzer Vineyards business in California, a strong sales increase of 28% – on +17% volumes – was offset by an average price/mix in dollars decline of just under 6%. “The [US] market has not fully recovered [from 2023’s destocking travails] and we cannot anticipate the same level of growth in subsequent quarters,” Concha added.

Finally, domestic sales for the Chile-headquartered company saw wine up almost 9%, led by its Exportación Selecto brand and aided by the introduction of new products such as Casillero del Diablo Devils Carnaval and Casillero Belight.

“This quarter, we can see a consistent growing trend that we observed in the previous two quarters,” said CEO Eduardo Guilisasti. “We are now witnessing the positive outcomes of the measures implemented by the company in recent years … .

“This recovery can be attributed, in part, to the introduction of new products and the emergence of new opportunities for consumption”