Vina Concha y Toro Reports Third Quarter 2009 Results

SANTIAGO, Chile, Oct. 29 /PRNewswire-FirstCall/ -- Vina Concha y Toro S.A. (NYSE: VCO), Chile's largest producer and exporter of premium wines, reports results for the third quarter 2009, ended September 30.

-- Net income for the quarter increased 20.1% to Ch$ 12,928 million (US$ 23.5 million), compared with Ch$ 10,768 million (US$ 19.6 million) in the third quarter of 2008. Earnings per ADR increased 14.6% to US$ 0.63 for the quarter.

-- For the quarter, total revenues increased 12.4% to Ch$ 96,129 million (US$ 175 million), with a positive contribution from all business areas.

-- Company CEO Eduardo Guilisasti said, "Company results in this period were highly satisfactory; we highlight Concha y Toro's strong competitive position that has allowed sales growth at a time when consumption in general has suffered a substantial contraction. Export sales in the quarter rose 10.5%, with a 2.2% increase in volume (export sales rose 14.3% by value and 7% by volume in the nine-month period). Growth has also been accompanied by a change in the mix to lower-priced products; this reflects the new market conditions we are facing. The Company has employed greater resources in supporting its future growth. Following a period of transition, the new distribution subsidiaries have already begun operating and are contributing positively to the company's results."

-- Domestic market sales increased 7.9% in the quarter, following a 3.6% increase in volume (sales rose 5.8% by value and 3.4% by volume in the nine-month period). This result has enabled the Company to increase its market share to 31.5% of all wine sold in Chile.

-- Operating income decreased 6.4% to Ch$ 13,168 million (US$ 24 million) in the third quarter 2009. This mainly reflects the change of the mix, with larger sales in the segments with lower prices, due to the economic cycle and higher selling and marketing expenses to support growth.

-- For the quarter, non-operating result presented a gain of Ch$ 2,568 million (US$ 4.7 million). This positive result is mainly explained by a gain obtained in exchange rate differences related to forward positions taken by the company as part of its exchange-rate hedging and fixing strategy related to its exports and also due to lower financial expenses as a result of a lower financial debt.

                             Financial Highlights
           (in millions of Chilean pesos as of September 30, 2009,
                  except percentages and per share amounts)

                          3Q2009   3Q2008   Change   9M2009   9M2008   Change

    Revenue from sales    96,129   85,534    12.4%  258,260  224,896    14.8%
    Gross Profit          36,492   33,371     9.4%   95,882   89,860     6.7%
    % sales                38.0%    39.0%             37.1%    40.0%
    Selling &
     Administrative
     Expenses            -23,324  -19,310    20.8%  -61,412  -52,553    16.9%
    % sales               -24.3%   -22.6%            -23.8%   -23.4%
    Operating Income      13,168   14,061    -6.4%   34,470   37,307    -7.6%
    % sales                13.7%    16.4%             13.3%    16.6%
    Non Operating result   2,568     -391  -757.6%    6,286   -2,423  -359.4%

    Net Income            12,928   10,768    20.1%   34,212   27,710    23.5%

    Earnings per share
     (Ch$)                  17.3    14.97    15.6%    45.92    38.53    19.2%
    Earnings per ADR
     (US$)                  0.63     0.55    14.6%     1.67     1.41    18.2%

    EBITDA                16,948   18,017    -5.9%   44,959   47,134    -4.6%
    % sales                17.6%    21.1%             17.4%    21.0%


    Contact:
    Blanca Bustamante
    Head of Investor Relations
    Vina Concha y Toro
    (562) 476-5026

SOURCE Vina Concha y Toro S.A.