Vina Concha Y Toro S.a. · BCS:CONCHATORO
Vina Concha Y Toro — 3Q23 Earnings Presentation
43 slides from Vina Concha Y Toro's earnings presentation, Nov 1, 2023
Slide 1: Results Presentation 3Q23
Slide 2: Agenda
AGENDA Chapter 01 2023 Overview OSVALDO SOLAR, CFO Chapter 02 3Q23 Sales analysis DANIELA LAMA, HEAD OF IR Chapter 03 3Q23 and 9M23 Results OSVALDO SOLAR, CFO Chapter 04 Outlook OSVALDO SOLAR, CFO
Slide 3: Chapter 01 – 2023 Overview
3Q23 RESULTS PRESENTATION VIÑA CONCHA Y TORO CHAPT ER 01 – 2023 OVERVIEW Chapter 01 OSVALDO SOLAR, CFO 2023 Overview 3
Slide 4: The challenging global picture persists
CHAPT ER 01 – 2023 OVERVIEW 4 The challenging global picture persists Market conditions have tended to improve recently, although the main elements that affected the business during the first part of the year were still present in the third quarter. Interest rates remained high and consumption weake
Slide 5: Chapter 02 – 3Q23 Sales Analysis
3Q23 RESULTS PRESENTATION VIÑA CONCHA Y TORO CHAPT ER 02 – 3Q23 SALES ANALYSIS Chapter 02 DANIELA LAMA, HEAD OF IR 3Q23 Sales analysis 5
Slide 6: Sales revenue per value
CHAPT ER 02 – 3Q23 SALES ANALYSIS 6 SALES REVENUE P E R VA L U E VAR (4.3%) (4.8%) PREMIUM AND UP VALUE 223,656 VALUE 213,012 VAR (5.3%) (6.5%) VARIETALS AND LOW 3Q23 RESULTS PRESENTATION VIÑA CONCHA Y TORO W INE VALUE (3.7%) NEW BUSINESS 3Q22 3Q23 VALUE (million of Ch$)
Slide 7: Sales revenue per volume
CHAPT ER 02 – 3Q23 SALES ANALYSIS 7 SALES REVENUE PER VOLUME VAR 1.2% (3.8%) PREMIUM AND UP VALUE 8,697 VOL 8,370 VAR (3.5%) (5.9%) VARIETALS AND LOW 3Q23 RESULTS PRESENTATION VIÑA CONCHA Y TORO W INE VALUE (6.7%) NEW BUSINESS 3Q22 3Q23 VALUE (thousand C9L)
Slide 8: Sales evolution per quarter
CHAPT ER 02 – 3Q23 SALES ANALYSIS 8 SALES EVOLUTION P E R Q U A RT E R (million of Ch$) 246,690 30.5% V/S 1Q23 222,180 223,656 VALUE 213,012 201,649 3Q23 RESULTS PRESENTATION VIÑA CONCHA Y TORO 178,055 163,172 5.6% V/S 2Q23 1Q 2Q 3Q 4Q VALUE Año2022 2022 Año2023 2023
Slide 9: Market performance
CHAPT ER 02 – 3Q23 SALES ANALYSIS 9 MARKET PERFORMANCE VAR % VALUE 1Q23 2Q23 3Q23 UK 2.0% 0.7% 14.4% CONCLUSIONS CHILE 1.7% 0.3% (2.7%) • Chile's decrease is due to lower wine consumption in the EE.UU. (15.5%) (18.4%) (5.5%) local market, accompanied by lower temperatures for the << beer segment. BR
Slide 10: Brand performance
CHAPT ER 02 – 3Q23 SALES ANALYSIS 10 BRAND PERFORMANCE VAR % VALUE 1Q23 2Q23 3Q23 DON MELCHOR (16.8%) 45.9% (21.8%) CONCLUSIONS CASILLERO DEL DIABLO (9.9%) (4.8%) 0.6% • Premium brands like Diablo and Trivento Reserve have DIABLO 12.4% 32.1% 14.0% remained strong throughout 2023. FRONTERA (18.3%) <<
Slide 11: Mix premium
CHAPT ER 02 – 3Q23 SALES ANALYSIS 11 MIX PREMIUM + 1 0 0 B P I N P R I N C I PA L + I N V E S T M I X VAR 14.0% +100 DIABLO 49.6% BP 50.6% VALUE 12.9% TRIVENTO RESERVE 3Q23 RESULTS PRESENTATION VIÑA CONCHA Y TORO VALUE 0.6% CASILLERO DEL DIABLO 3Q22 3Q23 VALUE OTHERS PRINCIPAL + INVEST
Slide 12: Chapter 03 – 3Q23 and 9M23 Results
3Q23 RESULTS PRESENTATION VIÑA CONCHA Y TORO CHAPT ER 03 – 3Q23 AND 9M23 RESULTS Chapter 03 OSVALDO SOLAR, CFO 3Q23 and 9M23 Results 12
Slide 13: Currency diversification
CHAPT ER 03 – 3Q23 AND 9M23 RESULTS 13 CURRENCY D I V E R S I F I C AT I O N 1.8% 1.5% CNY ARG 4.8% MXN Diversification of currencies attenuates the 7.2% 18.6% variations of the dollar as a single currency BRL CLP 1.4% NOK 1.7% SEK EXCHANGE RATE VARIATION 2.4% CAD 3Q23 vs. 3Q22 3Q23 RESULTS PRESENTA
Slide 14: Operating costs
CHAPT ER 03 – 3Q23 AND 9M23 RESULTS 14 O P E R AT I N G C O S T S 3Q23 (million of Ch$) 3Q23 3Q22 VAR (CH$) VAR (%) OPERATING COSTS (134,577) << (134,177) (401) 0.3% % COGS / SALES (63.2%) (60.0%) (320 BP) 3Q23 RESULTS PRESENTATION VIÑA CONCHA Y TORO Ch$ 2,783 m Ch$ 2,402 m Ch$ 330 m OF EXTRAORDINAR
Slide 15: Gross profit and gross margin
CHAPT ER 03 – 3Q23 AND 9M23 RESULTS 15 GROSS PROFIT & GROSS MARGIN Extraordinary costs in 3Q23 affect the margin by 1.3 points. Without these, the gross margin would have reached 38.1%. (million of Ch$) 3Q23 3Q22 VAR (CH$) VAR (%) CONSOLIDATED SALES 213,012 223,656 (10,644) (4.8%) 3Q23 RESULTS PRESE
Slide 16: SG&A
CHAPT ER 03 – 3Q23 AND 9M23 RESULTS 16 SG&A 3Q23 (million of Ch$) 3Q23 3Q22 VAR (CH$) VAR (%) SG&A (59,583) << (62,830) (3,246) (5.2%) % SG&A / SALES (28.0%) (28.1%) (10 BP) 3Q23 RESULTS PRESENTATION VIÑA CONCHA Y TORO Ch$ 1,169 m Ch$ 550 m Ch$ 445 m OF EXTRAORDINARY BY THIRD PARTY ADVICE BY IAS DUE
Slide 17: EBIT and EBITDA 3Q23
CHAPT ER 03 – 3Q23 AND 9M23 RESULTS 17 EBIT + EBITDA 3Q23 (million of Ch$) 3Q23 3Q22 VAR (%) % / SALES % / SALES % / SALES CONSOLIDATED SALES 213,012 223,656 (4.8%) GROSS PROFIT 78,434 36.8% 89,479 40.0% (12.3%) (320 bp) SG&A (59,583) (28.0%) (62,830) (28.1%) (5.2%) (10 bp) OTHER INCOMES AND EXPENSE
Slide 18: EBIT evolution
CHAPT ER 02 – 3Q23 SALES ANALYSIS 18 EBIT EVOLUTION (million of Ch$) 180.8% 29,757 V/S 1Q23 25,955 VALUE 24,579 24,583 18,622 3Q23 RESULTS PRESENTATION VIÑA CONCHA Y TORO 12,154 6,632 53.2% V/S 2Q23 1Q 2Q 3Q 4Q VALUE Año2022 2022 Año2023 2023
Slide 19: 3Q23 non-operational result
CHAPT ER 03 – 3Q23 AND 9M23 RESULTS 19 A C H A L L E N G I N G A N D C O M P L E X Q U A RT E R 3 Q 2 3 N O N - O P E R AT I O N A L R E S U LT (million of CH$) 3Q23 3Q22 VAR (CH$) VAR (%) NET FINANCIAL EXPENSE (*) (5,178) (3,503) (1,675) 47.8% << EXCHANGE DIFFERENCES 58 85 (26) (30.9%) 3Q23 RESULTS
Slide 20: Associated companies: Almaviva and Industria Corchera
CHAPT ER 03 – 3Q23 AND 9M23 RESULTS 20 A S S O C I AT E D C O M PA N I E S A L M AV I VA A N D I N D U S T R I A C O R C H E R A ALMAVIVA +2.1% INDUSTRIA CORCHERA VALUE 6,399 6,535 3,097 6,237 4,503 3,139 2,804 3Q23 RESULTS PRESENTATION VIÑA CONCHA Y TORO 2,142 (33.2%) 929 VALUE 626 344 349 231 233
Slide 21: Net profit and net margin
CHAPT ER 03 – 3Q23 AND 9M23 RESULTS 21 NET PROFIT (million of CH$) AND NET MARGIN (%) 11.8% 11.3% 10.1% 98,810 10.0% 87,213 8.1% 8.0% 8.0% 77,994 7.9% 3Q23 RESULTS PRESENTATION VIÑA CONCHA Y TORO 52,500 49,575 49,111 25,225 16,722 2017 2018 2019 2020 2021 2022 3Q22 3Q23 Utilidad neta Net profit Marg
Slide 22: Return on invested capital
CHAPT ER 03 – 3Q23 AND 9M23 RESULTS 22 R E T U R N O N I N V E S T E D C A P I TA L ROIC AS OF SEPTEMBER 2023 11.3% 10.3% 10.0% 9,1% 7.5% 7.4% 7.2% X 5.3% 3Q23 RESULTS PRESENTATION VIÑA CONCHA Y TORO 2017 2018 2019 2020 2021 2022 sept-22 SEP 22 sept-23 SEP 23 ROIC: (Operating Margin – Taxes + Exchan
Slide 23: Net financial debt
CHAPT ER 03 – 3Q23 AND 9M23 RESULTS 23 NET FINANCIAL DEBT (million of CH$) +78,071 403,631 321,915 325,560 266,898 250,413 240,573 221,101 201,374 X 3Q23 RESULTS PRESENTATION VIÑA CONCHA Y TORO 2017 2018 2019 2020 2021 2022 sept-22 SEP SEP 22 22 sept-23 SEP SEP2323 Net Financial Debt: Gross Financia
Slide 24: Low level of indebtedness
CHAPT ER 03 – 3Q23 AND 9M23 RESULTS 24 LOW LEVEL OF INDEBTEDNESS R E L AT I V E T O T H E S I Z E O F E Q U I T Y FINANCIAL STRENGTH NET DEBT RATIO 1.2 0.62 0.64 3Q23 RESULTS PRESENTATION VIÑA CONCHA Y TORO 0.52 0.55 0.53 0.49 0.43 0.36 X 2017 2018 2019 2020 2021 2022 sept-22 SEP 22 sept-23 SEP 23 R
Slide 25: Financial cost coverage
CHAPT ER 03 – 3Q23 AND 9M23 RESULTS 25 FINANCIAL COST COVERAGE AS OF SEPTEMBER 2023 FINANCIAL STRENGTH FINANCIAL COST COVERAGE RATIO 12.3 10.4 9.8 8.5 8.8 8.2 7.0 3Q23 RESULTS PRESENTATION VIÑA CONCHA Y TORO 4.8 2.5 X 2017 2018 2019 2020 2021 2022 sept-22 SEP 22 sept-23 SEP 23 Razón cobertura Financ
Slide 26: Net financial debt over EBITDA
CHAPT ER 03 – 3Q23 AND 9M23 RESULTS 26 NET FINANCIAL DEBT OVER EBITDA NET FINANCIAL DEBT * / EBITDA 4.2 2.9 2.6 2.6 2.4 2.2 2.5 3Q23 RESULTS PRESENTATION VIÑA CONCHA Y TORO 1.4 1.5 X 2017 2018 2019 2020 2021 2022 sept-22 SEP 22 sept-23 SEP 23 Deuda financieradebt Net financial neta/ /EBITDA EBITDA O
Slide 27: EBIT and EBITDA 9M23
CHAPT ER 03 – 3Q23 AND 9M23 RESULTS 27 EBIT + EBITDA 9M23 (million of CH$) 9M23 9M22 VAR (%) % / SALES % / SALES % / SALES CONSOLIDATED SALES 577,832 623,892 (7.4%) GROSS PROFIT 211,252 36.6% 246,490 39.5% (14.3%) (290 bp) SG&A (172,288) (29.8%) (169,698) (27.2%) 1.5% (260 bp) OTHER INCOMES AND EXPE
Slide 28: Chapter 04 – Outlook
3Q23 RESULTS PRESENTATION VIÑA CONCHA Y TORO CHAPT ER 04 – OUTLOOK Chapter 04 Outlook OSVALDO SOLAR, CFO 28
Slide 29: Outlook
CHAPT ER 04 – OUTLOOK 29 OUTLOOK ENCOURAGE THE OPERATIONAL ESG COMERCIAL EFFICIENCY PROGRESS MODEL 3Q23 RESULTS PRESENTATION VIÑA CONCHA Y TORO
Slide 30: Outlook: operational efficiency
CHAPT ER 04 – OUTLOOK 30 OUTLOOK ENCOURAGE THE O PER AT I O N A L ESG COMERCIAL EFFICIENCY PROGRESS MODEL 3Q23 RESULTS PRESENTATION VIÑA CONCHA Y TORO Ch$ 2,081 m SAVINGS IN 3Q23 Ch$ 5,000 m PROJECTED SAVINGS FOR 2H23
Slide 31: Outlook: ESG progress
CHAPT ER 04 – OUTLOOK 31 OUTLOOK ENCOURAGE THE OPERATIONAL ESG COMERCIAL EFFICIENCY PROGRESS MODEL 3Q23 RESULTS PRESENTATION VIÑA CONCHA Y TORO 7 POSITION INSIDE OF THE INDUSTRY AT A GLOBAL LEVEL 3 AREAS HAD BETTER PERFORMANCE
Slide 32: ESG progress: DJSI ranking improvements
CHAPT ER 04 – OUTLOOK 32 ESG PROGRESS RANKING IMPROVEMENTS DJSI 22’-23’ Today we are in 7th place in our industry globally. The 3 areas of best performance were: • Business Ethics • CO2 Emissions Management • Circular Economy (Waste Management) SCO RES CO M PANY 3Q23 RESULTS PRESENTATION VIÑA CONCHA
Slide 33: Outlook: commercial model
CHAPT ER 04 – OUTLOOK 33 OUTLOOK ENCOURAGE THE OPERATIONAL AVANCES COMERCIAL EFFICIENCY ESG MODEL 3Q23 RESULTS PRESENTATION VIÑA CONCHA Y TORO 2 RECOGNITIONS TO OUR BRANDS 1 LAUNCH FOR NEW CONSUMERS
Slide 34: Recognitions to our brands
CHAPT ER 04 – OUTLOOK ENCOURAGE THE COMERCIAL MODEL RECOGNITIONS TO OUR BRANDS A crucial part of the company's strategy is to have strong and global brands, which is why we continue to invest in brand building. We have four brands among the 25 most powerful in the world (Drinks International) and Co
Slide 35: Recognitions to our brands
CHAPT ER 04 – OUTLOOK 35 ENCOURAGE THE COMERCIAL MODEL RECOGNITIONS TO OUR BRANDS 3Q23 RESULTS PRESENTATION VIÑA CONCHA Y TORO Don Melchor's 2020 vintage was chosen as The Best Concha y Toro appeared among the most of the Best according to the prestigious international outstanding vineyards in the w
Slide 36: New launches
CHAPT ER 04 – OUTLOOK 36 ENCOURAGE THE COMERCIAL MODEL NEW LAUNCHES Viña Concha y Toro believes that systematic product innovation is a fundamental element in its objective of delivering solutions that provide added value to its consumers. This year we have sought to expand the traditional segment o
Slide 37: Casillero del Diablo launches Devil's Carnaval
CHAPT ER 04 – OUTLOOK 37 ENCOURAGE THE COMERCIAL MODEL NEW LAUNCHES Casillero del Diablo launches Devil’s Carnaval This new line of our main brand seeks to reach a new audience to expand the traditional market, 3Q23 RESULTS PRESENTATION VIÑA CONCHA Y TORO targeting younger segments. 2 LAUNCHES I N I
Slide 38: Market integration
CHAPT ER 04 – OUTLOOK ENCOURAGE THE COMERCIAL MODEL M A R K E T I N T E G R AT I O N 3 PRODUCTIVE ORIGINS +130 COUNTRIES OF 3Q23 RESULTS PRESENTATION VIÑA CONCHA Y TORO DESTINATION 13 COMMERCIAL OFFICES AND DISTRIBUTION
Slide 39: Market integration: % of total sales
CHAPT ER 04 – OUTLOOK M A R K E T I N T E G R AT I O N % O F T O TA L S A L E S 3Q23 RESULTS PRESENTATION VIÑA CONCHA Y TORO 82.1% OF T OT AL SALES
Slide 40: Market matrix
CHAPT ER 04 – OUTLOOK ENCOURAGE THE COMERCIAL MODEL M A R K E T M AT R I X 3 11 9 +107 3Q23 RESULTS PRESENTATION VIÑA CONCHA Y TORO MARKETS BY PRESENCE A MARKETS B MARKETS C MARKETS & PRIORITY
Slide 41: Focus on priority markets
CHAPT ER 04 – OUTLOOK M A R K E T M AT R I X FOCUS ON PRIORITY MARKETS A MARKETS B MARKETS C MARKETS PRESENCE P R I O R I T Y N E X T W A V E O T H E R S & PRIORITY > COMMERCIAL AND DISTRIBUTION OFFICES MARKET MANAGER 11 MARKETS 09 MARKETS + 107 MARKETS > 3Q23 RESULTS PRESENTATION VIÑA CONCHA Y TORO
Slide 42: Fourth quarter outlook
CHAPT ER 04 – OUTLOOK 42 During the fourth quarter, the path of 3Q23 RESULTS PRESENTATION VIÑA CONCHA Y TORO improvement compared to previous quarters should also continue to be supported by the normalization of macroeconomic conditions.
Slide 43: Viña Concha y Toro
VINA CONCHA Y TORO 1AC ANNIVERSARY