Vina Concha Y Toro S.a. · BCS:CONCHATORO
Vina Concha Y Toro — Q3 2019 Earnings Presentation
23 slides from Vina Concha Y Toro's earnings presentation, November 2019
Slide 1: Investor Presentation 3Q19 Results
Investor Presentation 3Q19 Results November, 2019
Slide 2: Forward Looking Statements
2 Forward Looking Statements This presentation contains forward-looking statements, that should be considered as good faith estimates. Such statements are subject to risks and uncertainties outside of Viña Concha y Toro’s control that could cause Viña Concha y Toro’s actual results to differ materia
Slide 3: Agenda
3 Agenda I. 3Q19 Results II. 9M19 Results
Slide 4: 3Q19 Results: Top line reflects volume growth
4 3Q19 Results 1. Top line reflects volume growth at Principal, Invest, and Protect brand categories (Ch$ million) 3Q19 3Q18 Var % Wine 156.348 144.675 8,1% Others 7.652 9.255 (17,3%) Total Sales 164.000 153.930 6,5% • Wine sales: +8.1%, on higher volume, led by export markets, and positive f/x. • W
Slide 5: Brand Matrix: Higher focus in Principal and Invest brands
Brand Matrix: Higher focus in Principal and Invest brands Brand matrix: 25 brands, represent 79% of group sales Principal & Invest brands : 40% of sales High INVEST 19% PRINCIPAL 21% • Don Melchor • Trivento Golden • MCC • Trivento Reserve • Casillero del Diablo • Diablo • 1,000 Stories • CdD Reserv
Slide 6: Focus of New Commercial strategy reflected in brands performance
6 3Q19 Results 2. Focus of New Commercial strategy reflected in brands performance • Brand Matrix Growth by category: Brand Value Var. Volume Var. Category Principal 5% 9% Invest 15% 15% Protect 9% 7% Watch -12% -15%
Slide 7: Key Brands posted strong volume growth
7 3Q19 Results Key Brands posted strong volume growth : • Principal Casillero del Diablo: +9% • Invest CyT: +23% • Invest Cono Sur: +15% • Invest Trivento : +20% • Invest Fetzer: +7% • Invest brands such as Diablo, CS Bicicleta, and Trivento Reserve, showed strong performance.
Slide 8: Casillero del Diablo
8 Casillero del Diablo Successful performance of Casillero del Diablo, Diablo and line extensions. CD Reserva: 3Q19: 1.3 mn cases +9% volume growth Diablo: 3Q19: 27,230 cases +67% volume growth Devils and Reserva Especial: 3Q19: 51,000 cases +9% volume growth
Slide 9: Brand Matrix – Trivento Reserve
9 Brand Matrix – Trivento Reserve Trivento Reserve: 3Q19: 182,000 cases 20% volume growth
Slide 10: Brand Matrix – Cono Sur Bicicleta
10 Brand Matrix – Cono Sur Bicicleta CS Bicicleta: 3Q19: 370,000 cases 18% volume growth
Slide 11: 3Q19 Results – Sales breakdown
11 3Q19 Results – Sales breakdown USA Direct Exports Other 2% 4% USA Domestic 17% Argentina Direct Exports 2% Argentina Domestic 1% Export Markets 59% Chile Domestic 15%
Slide 12: Performance across markets: Export markets
12 3Q19 Results 3. Performance across markets 3.1 Export markets: Value +15.3%, volume +13.0% • Strong value performance in: Asia: +40% Japan, China. Europe: +6% Netherlands, Ireland, Belgium, Poland, Denmark. Latin America: +35% Brazil, Mexico, Ecuador, Colombia. • Favorable F/X (~4%)
Slide 13: Chile domestic market led by Casillero del Diablo
13 3Q19 Results 3. Performance Across Markets 3.2 Chile domestic market led by Casillero del Diablo and upper Brand extensions. • Value +2.2% • Average Price: +8.6% • Volume: -5.9% • Premium wine : +22.9 volume +16.2% value • Non Premium -8.7 volume -6.9% value
Slide 14: Operation in USA
14 3Q19 Results 3.3 Operation in USA • Domestic market: mixed performance among the portfolio drove: +9,6% Volume: Fetzer +15%, Chile and Argentina +6.7% -8,1% Value: Fetzer +2.3%, Chile and Argentina -16% • The Chile and Argentina portfolios are in a process of integration to the Fetzer’s comercial
Slide 15: Operation in Argentina
15 3Q19 Results 3.4 Operation in Argentina: focus on exports and key markets. • Sales led by shipments to distribution offices. • Total Value: +52% • Total Volume: +49% • Leading brand: Trivento Reserve • Leading markets: UK, Brazil, Denmark and Ireland. • Domestic market: -22% in volume and value o
Slide 16: Operating profit increased 23%
16 3Q19 Results 4. Operating profit increased 23% and 59% in adjusted terms, reflecting: • Higher volume. • Lower wine cost in Chile and Argentina. • Favorable f/x. (Ch$ million) 3Q19 3Q18 Var % Sales 164,000 153,930 6.5% EBIT 21,452 17,457 22.9% EBIT margin 13.1% 11.3% 170 bp NRI 287 (3,796) Adj. E
Slide 17: Adjustments to Operating profit
17 3Q19 Results • Adjustments to Operating profit: NRI mainly consultancies and severance payments related to the restructuring process, and revaluation of assets in 2018 related to the purchase of Excelsior in the USA NRI (Ch$ million) 3Q19 3Q18 Restructuring costs 0 938 Restructuring SG&A 125 1,48
Slide 18: Non operating profit
18 Non operating profit 5. Non- Operating profit declined on lower exchange differences and higher financial costs • Financial costs increased on higher debt level after a bond issuance in a context of low interest rates. Proceeds are being used to pay debt maturities in 2019 and 2020. (Ch$ million)
Slide 19: 3Q19 Results: Reported and Adjusted
19 3Q19 Results Reported Adjusted (Ch$ million) 3Q19 3Q18 Var % 3Q19 3Q18 Var % Sales 164.000 153.930 6,5% 164.000 153.930 6,5% Gross profit 61.829 50.946 21,4% 61.829 51.884 19,2% Gross margin 37,7% 33,1% 460 bp 37,7% 33,7% 400 bp EBIT 21.452 17.457 22,9% 21.739 13.660 59,1% EBIT margin 13,1% 11,3%
Slide 20: Agenda
20 Agenda I. 3Q19 Results II. 9M19 Results
Slide 21: 9M19 Results
21 9M19 Results Reported Adjusted (Ch$ million) 9M19 9M18 Var % 9M19 9M18 Var % Sales 460.264 429.557 7,1% 460.264 429.557 7,1% Gross profit 165.512 139.798 18,4% 165.569 141.348 17,1% Gross margin 36,0% 32,5% 340 bp 36,0% 32,9% 310 bp EBIT 50.645 41.805 21,1% 52.221 41.095 27,1% EBIT margin 11,0% 9
Slide 22: Investor Presentation 3Q19 Results
Investor Presentation 3Q19 Results November, 2019
Slide 23: Currency mix
23 Currency mix 4Q17 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 CLP 19.3% 23.5% 20.6% 21.1% 15.6% 18.3% 16.3% 19.0% USD 40.2% 30.3% 33.6% 36.0% 40.1% 31.3% 37.2% 35.9% GBP 15.5% 19.4% 21.0% 20.5% 19.9% 24.5% 20.0% 18.3% EUR 8.7% 11.7% 8.2% 8.1% 7.9% 11.2% 9.8% 11.2% CAD 3.1% 4.1% 3.1% 3.4% 3.2% 3.5% 3.1% 2.