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Viña Concha y Toro sees profit increase despite global logistics crisis

Published:  08 November, 2021

Chilean producer Viña Concha y Toro's profits increased by 15% in the third quarter boosted by a better product mix, increases in its domestic market and real estate income which partially offset the global logistics crisis that affected shipments.

The company said that in the midst of the challenging scenario of the global shipping and land transport logistics crisis it managed to close the third quarter with a year-on-year increase in profit of 15.4% to US$30,316m. It also accumulated a profit of US$68,062M in the first nine months of the year, showing a year-on-year increase of 23%.

The news follows its second quarter results, which revealed a 16.5% consolidated sales uplift in its Q2 results (to 31 July).

The strong figures for the third quarter were despite a 2.9% drop in revenues between July and September, which were the result of lower sales in export markets and the US, which were impacted by the global logistics issues that impacted the volumes shipped.

Its domestic market in Chile showed sales increases in value of 25.1%, reflecting a higher average price of wine and strong sales in the beer and spirits category, while Argentina registered an increase of 36.8%.

Higher average prices were witnessed in all markets reflecting the continued focus on premiumisation in this third quarter. It highlighted the growth in value of Diablo (+100%), Marques de Casa Concha (+30.7%), Trivento Golden (+126%) and Don Melchor (+55.9%).

The company said its operating margin increased 40bp to 17.6% in the third quarter, partly reflecting the income from the sale of real estate assets. Bp is the percentage of revenue that a company retains as income after the deduction of expenses.

“Looking forward, the company remains confident on its strategy, its long-term fundamentals, and on its ability to adapt to change, as well as on its internal targets on results set towards 2022. On the logistics front, the company is focused on managing the supply-chain contingency,” said CEO Eduardo Guilisasti.

In its first quarter results earlier this year Viña Concha y Toro revealed that markets including the UK, Chile and USA drove sales growth.