VINA CONCHA Y TORO S A
SymbolVCO

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Vina Concha y Toro Reports Fourth Quarter and 2008 Results

2009-02-26 20:16 ET - News Release

SANTIAGO, Chile, Feb. 26 /PRNewswire-FirstCall/ -- Vina Concha y Toro S.A. , Chile's largest producer and exporter of premium wines, reports results for the fourth quarter and year 2008.

Fourth Quarter 2008

Net income for the quarter decreased 17.2% to Ch$ 7,162 million (US$ 11.3 million), compared with Ch$ 8,649 million (US$ 13.6 million) in fourth quarter 2007. Earnings per ADR decreased 29.6% to US$ 0.313 for the quarter.

For the quarter, total revenues increased 14.8% to Ch$ 90,888 million (US$ 143 million). Sales increased due to a strong quarter for exports from both Chile and Argentina, and a favorable currency impact. Operating income increased 12.3% to Ch$ 12,890 million (US$ 20.3 million) as a result of an expansion of volumes sold and a favorable currency impact.

The growth at the operating level was offset as the company registered non-operating losses of Ch$3,873 million (US$ 6.1 million) during the quarter as compared to a loss of Ch$ 514 million (US$ 0.8 million) in fourth quarter 2007. This was mainly due to a loss in exchange rate differences generated by price positions taken in anticipation of the fourth quarter.

Year 2008

Net income for the year decreased 5.2% to Ch$ 35.152 million (US$ 55.2 million). Earnings per ADR decreased 19.4% to US$ 1.54 for the year.

Total revenues for the year increased 3.5% to Ch$322,166 million (US$ 506 million) mainly as a result of an increase in exports sales from Chile, partly offset by a lower annual average exchange rate. Operating income posted a slight decline of 0.3% to Ch$ 51,282 million (US$ 80.6 million), mainly reflecting a higher direct cost and a lower average exchange for the year.

Commenting on the results for the year, Eduardo Guilisasti, Vina Concha y Toro CEO, said, "The year 2008 presented important challenges for our industry and our company in particular. The first half of the year was noted for its extremely unfavorable exchange rates, which led the company to concentrate strongly on profitability. The second half, and the last quarter in particular, saw more favorable exchange rate conditions, this, however, in the context of a deep and generalized global financial and economic crisis.

"We, therefore, consider the Company's results favorably, particularly in export markets. During 2008, export sales measured in dollars grew by 12%, with an 8.1% increase in volume and a 3.6% rise in the average price. The company achieved diversified growth across most of its regional markets, with important contributions from the subsidiaries: Vina Cono Sur, Vina Maipo and Vina Palo Alto, all posting solid growth. Vina Concha y Toro and its subsidiaries again this year increased their market share over total exports reaching 37% of the volume and 31.4% of the value of total wine exported from Chile."

 Financial Highlights (in millions of Chilean pesos as of December 31, 2008,
                  except percentages and per share amounts)

                            4Q2008   4Q2007  Change     2008     2007  Change

    Revenue from sales      90,888   79,188   14.8%  322,166  311,225    3.5%
    Gross Profit            36,154   31,216   15.8%  128,565  125,333    2.6%
    % sales                  39.8%    39.4%            39.9%    40.3%
    Selling &
     Administrative
     Expenses              -23,264  -19,738   17.9%  -77,283  -73,883    4.6%
    % sales                  25.6%    24.9%            24.0%    23.7%
    Operating Income        12,890   11,478   12.3%   51,282   51,450   -0.3%
    % sales                  14.2%    14.5%            15.9%    16.5%
    Non Operating result    -3,873     -514  652.8%   -7,028   -5,458   28.8%

    Net Income               7,162    8,649  -17.2%   35,152   37,090   -5.2%

    Earnings per share
     (Ch$)                    9.96    12.03  -17.2%    48.88    51.57   -5.2%
    Earnings per ADR (US$)   0.313    0.445  -29.6%     1.54     1.91  -19.4%

    Ebitda                  17,091   15,438   10.7%   65,588   65,846   -0.4%
    % sales                  18.8%    19.5%            20.4%    21.2%

A more detailed version of this press release and a presentation is available on the web site: http://www.conchaytoro.com .

Vina Concha y Toro S.A.

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