Chilean wine company Concha y Toro has reported a fall in sales to the UK market for the full year 2022.
The company said last week that sales volumes to the market decreased by 16.7% year-on-year. The dip was “primarily due to the slowdown in the category at the industry level, adjustments after price increases, and lower volumes in the commercial category under £5”, CyT said.
The Casillero del Diablo owner also reported a 12% fall in sales to the UK market in the final quarter of 2022. The fall was driven by lower volumes (-16.2%).
Overall, global consolidated sales for the company rose 4% to CLP870,582 million in 2022, compared to a year prior.
Operating profit reached CLP104,873 million in the year, a decrease of 21.1% compared to 2021. CyT said this was primarily due to extraordinary market conditions impacting raw materials costs, logistics expenses, and shipping costs.
“During 2022, we faced a highly complex global business environment, marked by inflationary pressures and economic deceleration that resulted in significant cost increases and changes in buying patterns among our main markets,” said CEO Eduardo Guilisasti. “This challenging scenario has required us to make swift adjustments in various business areas to adapt to the new production, commercial, logistics, and financial environment.
“On a commercial level, we have been able to increase prices in most of our markets. In terms of operations and logistics, we have strengthened cost management, and have taken steps to accelerate continuous improvement and achieve new efficiencies with a more streamlined operation.
“Meanwhile, the company’s financial strength has enabled us to make investments in working capital in order to mitigate the impact of the logistics crisis, and ensure the availability of products and continuity of business with our customers. The higher exchange rate, reflecting the riskier global outlook, had a positive impact on our company’s sales and profitability.”