Vina Concha Y Toro S.a. · BCS:CONCHATORO
Vina Concha Y Toro — Q3 2022 Earnings Presentation
34 slides from Vina Concha Y Toro's earnings presentation, Nov 7, 2022
Slide 1: 3Q22 Results Investor Presentation
3Q22 Results INVESTOR PRESENTATION
Slide 2: Agenda
3Q22 RESULTS | VIÑA CONCHA Y TORO 02 AGENDA 01 2022 Review Osvaldo Solar, CFO 02 3Q22 Sales Analysis Blanca Bustamante, IR Director 03 3Q22 and 9M22 Financial Result Osvaldo Solar, CFO
Slide 3: 2022 Review
3Q22 RESULTS | VIÑA CONCHA Y TORO 33 01 2022 Review Osvaldo Solar, CFO
Slide 4: A challenging and complex year 2022
3Q22 RESULTS | VIÑA CONCHA Y TORO 4 A challenging and complex year 2022 It has been a challenging year that has led us to manage the different areas of the business, always with a medium and long-term vision, and with the conviction of the strengths of our business model and strategy that we carry o
Slide 5: Opportunities
3Q22 RESULTS | VIÑA CONCHA Y TORO Opportunities • We have made price increases across the markets, which has allowed us to cope with cost inflation and extraordinary increases in shipping rates. • Standardization of shipments and freight. • The mix of Principal and Invest brands shows a slight recov
Slide 6: Challenges
3Q22 RESULTS | VIÑA CONCHA Y TORO Challenges • Global economic-financial context: Inflation, economic contraction, interest rate hikes, and exchange rate volatility. • High level in shipping rates and logistics costs, impacting direct costs and logistics expenses. • Adjustment of demand in our main
Slide 7: 3Q22 Sales Analysis
3Q22 RESULTS | VIÑA CONCHA Y TORO 7 02 3Q22 Sales Analysis Blanca Bustamante, IR Director
Slide 8: 3Q22 Sales growth
3Q22 RESULTS | VIÑA CONCHA Y TORO 8 3Q22 Sales growth Result that reflects a positive effect due to higher average price, favorable exchange rate effect, offset by a lower volume. +9.4% 223,656 VAR 204,440 +10.1% Wine 3Q21 3Q22 (Ch$ million)
Slide 9: 3Q22 Volume
3Q22 RESULTS | VIÑA CONCHA Y TORO 9 3Q22 Volume Deceleration in volume drop compared to 1H22. (4.7%) 9,124 8,697 VAR (4.7%) Wine 3Q21 3Q22 (thousand of C9L)
Slide 10: Main markets performance
3Q22 RESULTS | VIÑA CONCHA Y TORO 10 Main markets performance 3Q22 % OF SALES VAR % VALUE VAR % VOLUME UK 22.1% (5.3%) (17.7%) Chile 18.6% (2.8%) (5.5%) USA 12.3% (6.7%) (27.0%) Brazil 6.9% (2.4%) (24.5%) Mexico 4.7% 41.3% 11.1% Japan 3.9% 212.6% 122.1% China 3.7% 74.5% 47.8% Netherlands 3.2% 22.4%
Slide 11: UK: rise of +9.4% in average price in pounds
3Q22 RESULTS | VIÑA CONCHA Y TORO 11 UK: rise of +9.4% in average price in pounds VAR % PRICE 3Q22 VAR % VAL. VAR % VOL. (POUND) WINE (5.3%) (17.7%) 9.4% % OF SALES IN VALUE Key brands outperform the category (value / volume): 66.6% 67.1% Industry: -3.8% / -5.4% CDD: +2.6% / -0.9% Trivento: +6.7% /
Slide 12: Chile: Principal + Invest wine mix grew 30 bp to 41.3%
3Q22 RESULTS | VIÑA CONCHA Y TORO 12 Chile: Principal + Invest wine mix grew 30 bp to 41.3% 3Q22 VAR % VAL. VAR % VOL. VAR % PRICE WINE 2.8% (5.8%) 9.2% % OF WINE SALES IN VALUE 41.0% 41.3% Market Share: 28.8% +0.4 pts (YTD). 59.0% 58.7% Source: Nielsen 12W (07.22) 3Q21 3Q22 Others Principal + Inves
Slide 13: USA: volume impacted by distributor inventories and Bonterra promotion
3Q22 RESULTS | VIÑA CONCHA Y TORO 13 USA: volume impacted by adjustment in distributor inventories and the Bonterra promotion VAR % PRICE 3Q22 VAR % VAL. VAR % VOL. (USD) WINE (6.7%) (27.0%) 6.5% % OF SALES IN VALUE Category performance 48.2% 50.6% vs CyT USA L13W in value: Industry: -1.7% 51.8% 49.
Slide 14: Wine: Brand matrix performance
3Q22 RESULTS | VIÑA CONCHA Y TORO 14 Wine: Brand matrix performance 3Q22 WINE VAR % VAL. VAR % VOL. PRINCIPAL 7.0% (6.7%) BRAND MATRIX INVEST 14.5% 0.4% PROTECT 8.8% (3.5%) WATCH (18.7%) (30.9%) PORTFOLIO SUPER & ULTRA PREMIUM 35.8% 13.2% TOTAL WINE 10.1% (4.7%)
Slide 15: Premium mix: +90 bp in the Principal and Invest mix
3Q22 RESULTS | VIÑA CONCHA Y TORO 15 Premium mix: +90 bp in the Principal and Invest mix. % OF TOTAL SALES IN VALUE 48.3% 49.2% 51.7% 50.8% 3Q21 3Q22 Others Principal + Invest
Slide 16: 3Q22 Financial Results
3Q22 RESULTS | VIÑA CONCHA Y TORO 16 16 03 3Q22 Financial Results Osvaldo Solar, CFO
Slide 17: Gross profit +7.9%
3Q22 RESULTS | VIÑA CONCHA Y TORO 17 Gross profit +7.9% (Ch$ million) 3Q22 3Q21 VAR (%) Consolidated sales 223,656 204,440 9.4% Gross profit 89,479 82,929 7.9% Gross margin 40.0% 40.6% (60 bp)
Slide 18: SG&A – Impact due to increase in freight, wages and marketing
3Q22 RESULTS | VIÑA CONCHA Y TORO 18 SG&A – Impact due to increase in freight, wages and marketing (Ch$ million) 3Q22 3Q21 VAR (%) Consolidated sales 223,656 204,440 9.4% Gross profit 89,479 82,929 7.9% SG&A (62,830) (52,421) 19.9% SG&A / Sales 28.1% 25.6% 250 bp 3 concepts that mainly explain the i
Slide 19: Other income and expenses
3Q22 RESULTS | VIÑA CONCHA Y TORO 19 Other income and expenses During this quarter, the extraordinary revenues of 3Q21, which included Ch$ 5,764 million, were not repeated. (Ch$ million) 3Q22 3Q21 VAR (%) Consolidated sales 223,656 204,440 9.4% Gross profit 89,479 82,929 7.9% SG&A (62,830) (52,421)
Slide 20: EBIT and EBITDA
3Q22 RESULTS | VIÑA CONCHA Y TORO 20 EBIT and EBITDA 3Q22 3Q21 Var (%) (Ch$ million) % / Sales % / Sales % / Sales Consolidated sales 223,656 204,440 9.4% Gross profit 89,479 40.0% 82,929 40.6% 7.9% (60) SG&A (62,830) (28.1%) (52,421) (25.6%) 19.9% (250) Other incomes and expenses (695) (0.3%) 3,555
Slide 21: Non-Operating result
3Q22 RESULTS | VIÑA CONCHA Y TORO 21 Non-Operating result (Ch$ million) 3Q22 3Q21 VAR (%) Var (Ch$) Net financial expense (*) (3,503) (2,680) 30.7% (823) Exchange differences 85 (127) 211 Associated companies (**) 6,646 7,701 (13.7%) (1,055) Non-Operating result 3,227 4,894 (34.1%) (1,667) (*) Net F
Slide 22: Non-Operating result
3Q22 RESULTS | VIÑA CONCHA Y TORO 22 Non-Operating result Non-operating result decreased Ch$ 1,667 MM due to: • Higher Net financial expense of Ch$ 823 MM. • Improvement in Exchange differences of Ch$ 211 MM. • Less profit by Associated companies of Ch$ 1,055 MM. FA C TO R S TO H I G H L I G H T: •
Slide 23: Result of Associated Companies and Minority Interest
3Q22 RESULTS | VIÑA CONCHA Y TORO 23 Result of Associated Companies and Minority Interest (Proportional Value for CyT) ALMAVIVA INDUSTRIA CORCHERA 6,399 3,097 2,717 5,035 2,477 4,503 3,139 2,804 2,142 626 344 349 269 231 240 2018 2019 2020 2021 3Q21 3Q22 2017 2018 2019 2020 2021 3Q21 3Q22 Venta de T
Slide 24: 3Q22 Currency diversification
3Q22 RESULTS | VIÑA CONCHA Y TORO 24 3Q22 Currency diversification Diversification of currencies attenuates the variations of the dollar as a single currency. MXN CNY ARG 4.8% 1.7% 1.2% CLP BRL 18.9% 6.9% NOK 1.4% SEK Exchange rate variation 3Q22 vs 3Q21 2.0% CAD 2.8% CyT basket: +11.3% Dollar: +20.
Slide 25: 3Q22 Taxes
3RQ E 2S 2U LRTEA SDUO L TSS3 |QV2 I2Ñ A C O N C H A Y T O R O 25 3Q22 Taxes (Ch$ million) 3Q22 3Q21 VAR (%) Consolidated sales 223,656 204,440 9.4% Gross profit 89,479 82,929 7.9% EBIT 25,955 35,891 (27.7%) Profit before taxes 29,181 40,786 (28.5%) Taxes (3,782) (10,183) (62.9%)
Slide 26: 3Q22 Net profit
3Q22 RESULTS | VIÑA CONCHA Y TORO 26 3Q22 Net profit (Ch$ million) 3Q22 3Q21 VAR (%) Consolidated sales 223,656 204,440 9.4% Gross profit 89,479 82,929 7.9% EBIT 25,955 35,891 (27.7%) Net profit 25,225 30,316 (16.8%) Net margin 11.3% 14.8% (360 bp)
Slide 27: 9M22 Financial Results
3Q22 RESULTS | VIÑA CONCHA Y TORO 27 27 03 9M22 Financial Results Osvaldo Solar, CFO
Slide 28: 9M22: Net profit and Net margin
3Q22 RESULTS | VIÑA CONCHA Y TORO 28 9M22: Net profit and Net margin 120,000 14.0% (Ch$ MM) 11.8% 11.8% 12.0% 100,000 10.1% 10.6% 98,810 80,000 -2.9% 10.0% 8.1% 8.0% 8.0% 77,994 8.0% 60,000 68,062 66,104 6.0% 49,575 49,111 52,500 40,000 4.0% 20,000 2.0% - 0.0% 2017 2018 2019 2020 2021 2021 9M21 2022
Slide 29: Return on invested capital – ROIC
3Q22 RESULTS | VIÑA CONCHA Y TORO 29 Return on invested capital – ROIC 11.3% 10.3% 10.6% 10.0% 7.4% 7.2% 2018 2019 2020 2021 sept-21 sept-22 ROIC: (Operating Margin – Taxes + Exchange Differences) / (Equity – Other Financial Liabilities – Derivatives – Cash). * Income Statement corresponds to the 12
Slide 30: Net financial debt
3Q22 RESULTS | VIÑA CONCHA Y TORO 30 Net financial debt +32.6% 325,560 266,898 250,413 240,573 245,511 Increases in: 221,101 201,374 Ch$ 80,049 MM vs 9M21 Increases in: Ch$ 84,987 MM vs 2021 2017 2018 2019 2020 2021 sept-21 9M21 sept-22 9M22 Net Financial Debt is calculated as: Gross Financial Debt
Slide 31: Adequate level of indebtedness relative to the size of the Equity
3Q22 RESULTS | VIÑA CONCHA Y TORO 31 Adequate level of indebtedness relative to the size of the Equity FINANCIAL STRENGTH Net Debt Ratio (Net Financial Debt*/ Equity) 1.2 1.2 1.2 1.2 1.2 1.2 1.2 0.62 0.49 0.52 0.55 0.52 0.36 2018 2019 2020 2021 sept-21 9M21 sept-22 9M22 Net Debt Ratio Covenants * Ne
Slide 32: Debt and Financial Expense vs. Cash generation
3Q22 RESULTS | VIÑA CONCHA Y TORO 32 Debt and Financial Expense vs. Cash generation FINANCIAL STRENGTH Ratio Coverage of Financial Costs Net Financial Debt* / EBITDA 12.3 3.0 11.2 10.4 2.6 9.8 2.5 2.5 8.5 2.5 7.0 1.7 1.6 1.4 2.5 2018 2019 2020 2021 sept-21 9M21 sept-22 9M22 2018 2019 2020 2021 sept-
Slide 33: Closing Outlook
3Q22 RESULTS | VIÑA CONCHA Y TORO 33 Closing Outlook In a scenario that remains challenging, we will continue working to achieve our growth and profitability objectives, always with a medium and long-term view. • Conviction that the Premiumization strategy has borne fruit and its relevance to ensure
Slide 34: 3Q22 Results
3Q22 Results INVESTOR PRESENTATION