Viña Concha y Toro upbeat on healthy finish to 2024 - results data

Final quarter of 2024 sees sales increase by 9.1% (in reported terms) to CLP282.9bn (US$303m)
Maintains high single-digit growth rate from Q3 – Full-year sales up 14.5% at CLP958.6bn ($1.03bn)
Casillero del Diablo brand up in value by 19.8% in 2024

Chile’s Viña Concha y Toro has closed the book on an “exceptionally positive” full year that saw its top line rise by approaching 15%.

Highlighting a fifth consecutive quarter of sales rises after 2022-23’s struggles, the Casillero del Diablo brand owner booked a lift of 9.1% from the three months to the end of December. Exports – not including to the US – performed particularly well in Q4, climbing 10.2% on a 7% volumes increase.

(The group details its results in reported rather than organic terms, meaning any impact from foreign exchange fluctuations is included in the figures.)

While admitting the last three months of 2024 had been “higher than expected” in sales terms, the company noted that a better exchange rate had played its part. That said, a longstanding focus on product mix helped drive a stronger average price abroad with the UK, Concha’s largest export market, displaying “significant growth”, up 14.5% in value on the corresponding period a year earlier.

Domestically, wine sales were up 2.1% on a -6.7% showing for volumes, indicating success at the higher-priced end of the portfolio. Meanwhile, in the US, home to the group’s Bonterra Organic Estates unit and including exports, quarterly sales rose 12.4% in reported terms although volumes were flat.

For the full 12-month period, Concha’s “ongoing premiumisation strategy” was referenced as having countered the “the adverse and challenging conditions faced throughout the year”. Exports (not including to the US) were up by approaching 17% with the the Casillero del Diablo, Trivento Reserve, Diablo and Isla Negra brands all up by double-digits in the UK. Over in the US, which rose by 18.7% in value in 2024, stock levels normalised during the year; group volumes in the country increased by just over 11%.

“2024 proved to be an exceptionally positive year for Viña Concha y Toro,” said CEO Eduardo Guilisasti. “The company achieved robust operational performance, distinguishing itself from competitors within the challenging landscape of the spirits (sic) industry. The fourth quarter delivered remarkable results, (while) as projected, we experienced a significant increase in value during the cumulative period.

“2024 confirmed the integrity of our competitive advantages, including our 12 proprietary distribution offices globally, alongside the strength of our brands.”