Viña Concha y Toro (CONCHATORO) Q3 2024 earnings summary

Executive summary

• Achieved four consecutive quarters of sales growth, consolidating recovery and supporting projections for low double-digit sales value growth in 2024.

• Consolidated sales up 16.9% year-over-year for 9M24, driven by premiumization and strong performance of priority brands.

• Demonstrated resilience and readiness for continued growth in both sales and profitability, despite global wine industry challenges.

• Strategic focus on premium brands and cost efficiencies led to improved margins and profitability.

Financial highlights

• 9M24 consolidated sales reached CLP $675,718 million (+16.9% YoY); 3Q24 sales at CLP $232,200 million (+9.0% YoY).

• Gross profit margin improved by 70 bps to 51.8% for 9M24; 3Q24 gross margin at 38.5% (+170 bps YoY).

• EBITDA up 24.3% to CLP $102,911 million for 9M24 (EBITDA margin +500 bps); 3Q24 EBITDA rose 25.8% YoY to CLP $33,216 million.

• Net income nearly doubled, up 99.7% YoY to CLP $52,348 million for 9M24; net margin at 7.7% (+320 bps).

• EBIT for 9M24 rose 114.9% YoY; EBIT margin up 540 bps to 11.9%.

Outlook and guidance

• Sales in value expected to grow at low double digits in 2024, with operating margins projected between 15% and 16% into 2025.

• Targeting CLP $140,000 million EBIT by 2025 and a 40% gross margin.

• Operational efficiency and product innovation plans are expected to further enhance results.