Viña Concha y Toro Announces Its Consolidated Second Quarter 2016 Results
Aug 26, 2016, 12:51 ET
SANTIAGO, Chile, Aug. 26, 2016 /PRNewswire/ -- Viña Concha y Toro S.A. ("The Company" or "Concha y Toro") (NYSE: VCO,), global leading winery and the principal wine producer and exporter of Chile, announced today its consolidated financial results, stated under IFRS, for the second quarter 2016 ended June 30, 2016. For the quarter, Net Income increased 32.2% totaling Ch$13,248 million. This result is explained mainly due to the growth in volume of all the wine business areas, a significant growth in the Premium category, and a net exchange rate positive effect.
Eduardo Guilisasti, CEO, says "I would like to highlight the expansion in the Operating Margin and the increase of the Net Income. This is explained by the volume rises, the positive role and performance delivered by distribution subsidiaries of the Company and a positive performance of our premium brands, all of them main elements of our global business strategy."
Highlights 2Q2016 vs 2Q2015
- Increase of 32.2% of the Net Income totaling Ch$13,248 million, representing an expansion of 130bp in comparison to the second quarter of 2015.
- Expansion of 226bp in the EBIT Margin, reaching a 12.6% as percentage over sales, figure that represents operating income of Ch$21,825 million.
- The Operating Income plus depreciation and amortization increased 23.5%, representing an expansion of 170bp, figure that represents 15.5% as percentage over sales.
- Stands out the performance of Casillero del Diablo, a truly global brand with presence in 147 countries, with higher sales of 12% and 8% in terms of value and volume.
- Total sales increased by 9.9% totaling Ch$173,292 million in the quarter, highlighting:
- Export Markets from Chile increased 10.5% in value totaling Ch$116,463 million, driven by a 5.5% of higher commercialized volumes.
- Asian markets presented an increase of 18% in volume, driven by increases in China (+64%), Japan (+12%) and Australia (+114%).
- The Canadian market registered higher sales of 23% in volume, positively impacted by higher sales of Casillero del Diablo (+64%) Frontera (+20%) and Cono Sur's brands (+15%).
- UK contributed with a 4.8% volume growth, with strong sales of core brands: Casillero del Diablo (+17%), Trivento Reserve (+35%) and Cono Sur Bicicleta (+39%).
- The Mexican market rose its volumes by 21%, boosted by higher sales of Reservado CyT (+19%), Maipo Blend (+50%) and Casillero del Diablo (+33%).
- The Chilean domestic market grew a 5.7% in volumes, driven by higher sales of Casillero del Diablo (+15%) and Cono Sur's Portfolio (30%).
- Fetzer Vineyards sales of bottled wine increased by 12.1% in volume terms, boosted by higher sales in the domestic market (9.8%) and export markets (35.1%). Fetzer's core brands Fetzer, Bonterra and 1000 Stories are showing an attractive momentum.
- Sales in the Argentinean subsidiary, Trivento Bodegas y Viñedos, grew 26% in value and 38.7% in volume, based on positive results in export markets and domestic markets. Trivento has shown a positive performance of its brands in USA, Brazil and Japan.
SOURCE Vina Concha y Toro S.A.