Viña Concha y Toro (CONCHATORO) Q1 2025 earnings summary

Executive summary

• Consolidated sales rose 1.4% year-over-year to CLP $208,978 million in 1Q25, marking the sixth consecutive quarter of growth, driven by premiumization and improved product mix.

• Net profit increased 8.2% to CLP $13,783 million, with a net margin of 6.6% (+40 bps YoY).

• Premium and superior wine segments grew in both value (+6.4%) and volume (+5.7%), now accounting for 51.9% of revenues, up 230 bps from 1Q24.

• Strong brand performance from Casillero del Diablo, Diablo, Bonterra, and Don Melchor, while varietal and inferior segments declined due to competition.

• Volume declined 2.7% year-over-year, mainly in non-premium brands due to competitive pressures.

Financial highlights

• Gross profit increased 2.5% to CLP $80,589 million, with gross margin up 50 bps to 38.6%.

• EBITDA grew 5.8% year-over-year to CLP $30,447 million, with EBITDA margin improving by 60 bps to 14.6%.

• Adjusted EBIT, excluding extraordinary write-offs, rose 7.4% year-over-year to CLP $23,518 million; adjusted EBIT margin reached 11.3%, up 60 bps from 1Q24.

• Earnings per share rose 8.2% to CLP $18.7.

• Cost of sales increased 0.7%, with cost-to-sales ratio down 40 bps to 61.4%.

Outlook and guidance

• The environment remains volatile and uncertain, with tax increases and rising US tariffs, but management projects sales growth of 3% to 8% by 2025 and sees opportunities to be seized.

• Positive perspectives for non-operating results, with inflation hedges and full coverage of bonds.