SANTIAGO, Chile, Oct. 29 /PRNewswire-FirstCall/ -- Vina Concha y Toro S.A. , 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
Vina Concha y Toro S.A.
CONTACT: Blanca Bustamante, Head of Investor Relations, Vina Concha y
Toro, +011-562-476-5026
Web site: http://www.conchaytoro.com/
