SANTIAGO, Chile, Aug. 12 /PRNewswire-FirstCall/ -- Vina Concha y Toro S.A. , Chile's largest producer and exporter of premium wines, reports results for the second quarter and first half 2009, ended June 30.
-- Net income for the quarter increased 11.3% to Ch$ 12,989 million (US$ 24.4 million), compared with Ch$ 11,668 million (US$ 21.9 million) in the second quarter of 2008. Earnings per ADR increased 10.3% to US$ 0.66 for the quarter.
-- For the quarter, total revenues increased 19.3% to Ch$ 94,439 million (US$ 178 million). Growth was primarily driven by greater sales in export markets.
-- Company CEO Eduardo Guilisasti said, "Company results in this period were highly satisfactory due to the favorable sales growth in the principal markets at a time when consumption in general has suffered a substantial contraction. Export sales in the quarter rose 18.8%, driven by an 11.3% increase in volume (Export sales rose 16.6% by value and 10% by volume in the first half). Notable was the growth seen in the markets of the United States, United Kingdom, Japan and Canada, demonstrating the strength of our brand delivering an excellent value proposition."
-- Domestic market sales increased 4.5% in the quarter, following a 5.3% increase in volume, partly offset by a 0.7% decline in the average price.
-- Operating income decreased 4.8% to Ch$ 13,536 million (US$ 25.5 million) in the second quarter 2009 and the operating margin decreased to 14.3% from 18% in the quarter. This mainly reflects the higher average cost in this period and a change of the mix, with larger sales in the segments with lower prices, due to the economic cycle and higher promotional activity in the UK.
-- Non-operating result presented a gain of Ch$ 2,341 million (US$ 4.4 million) as compared to a gain of Ch$ 513 million (US$ 1 million) in the second quarter 2008. This 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.
Financial Highlights (in millions of Chilean pesos as of June 30, 2009, except percentages and per share amounts)
2Q2009 2Q2008 Change 1H2009 1H2008 Change Revenue from Sales 94,439 79,165 19.3% 162,896 139,951 16.4% Gross Profit 35,188 33,373 5.4% 59,671 56,728 5.2% % sales 37.3% 42.2% 36.6% 40.5% Selling & Administrative Expenses -21,652 -19,153 13.0% -38,261 -33,415 14.5% % sales 22.9% 24.2% 23.5% 23.9% Operating Income 13,536 14,220 -4.8% 21,410 23,313 -8.2% % sales 14.3% 18.0% 13.1% 16.7% Non Operating Result 2,341 513 356.6% 3,597 -1,242 -389.7% Net Income 12,989 11,668 11.3% 21,384 17,627 21.3% Earnings per share (Ch$) 17.57 16.22 8.3% 28.92 24.51 18.0% Earnings per ADR (US$) 0.66 0.60 10.3% 1.09 0.90 20.2% Ebitda 16,921 17,111 -1.1% 28,153 29,210 -3.6% % sales 17.9% 21.6% 17.3% 20.9%
A longer version of this press release with detailed information is available on the web site: http://www.conchaytoro.com/ .
Vina Concha y Toro S.A.
CONTACT: Chile: Osvaldo Solar, Chief Financial Officer, or Blanca
Bustamante, Head of Investor Relations, both of Vina Concha y Toro,
+011-562-476-5026, bbustamante@conchaytoro.cl
Web site: http://www.conchaytoro.com/
