Viña Concha y Toro (CONCHATORO) Q2 2025 earnings summary

Executive summary

• Consolidated sales grew 2.3% year-over-year to CLP $453,809 million in 1H25, with gross profit up 2.3% to CLP $177,249 million and net profit down 4.9% to CLP $32,785 million, reflecting a net margin of 7.2% (down 60 bp).

• Premiumization strategy advanced, with premium and superior wines now 53.3% of the mix (up 220 bp), and value sales in this segment up 6.6% year-over-year.

• Premium and high-end brands accounted for 54.3% of sales in 2Q25, up 190 basis points, with standout growth in Don Melchor (+208.3%), Diablo (+14.2%), and Trivento Reserve (+2.7%).

• Despite revenue growth, operating profit and net income declined due to higher costs, new taxes, and increased competition in lower-value segments.

• The company maintained market share leadership in Chilean wine exports, increasing from 35.8% to 37.5% in volume as of May.

Financial highlights

• EBITDA fell 4.6% year-over-year to CLP $67,268 million, with EBITDA margin at 14.8% (down 110 bp).

• EBIT dropped 9.3% to CLP $49,640 million, with EBIT margin at 10.9% (down 140 bp).

• Net financial expense decreased 20.7% year-over-year, aided by lower debt and interest rates.

• 2Q25 net income: CLP $19,001 million (-12.6% YoY); net margin 7.8% (-140 bp YoY).

• Earnings per share in 2Q25: CLP $25.7 (-12.6% YoY); 1H25: CLP $44.4 (-4.9% YoY).

Outlook and guidance

• Significant volume growth expected in premium and superior brands (CDD, Trivento, Bonterra) for 2H25, with slight growth in varietal and lower categories.

• Management remains optimistic for the second half of the year, citing ongoing efficiency initiatives and adaptability to consumer trends.

• The company expects continued focus on premiumization and market share gains, despite ongoing global volatility and industry challenges.

• Strengthening of the Pirque business unit with the opening of the Wine Center.