CHILE: Concha y Toro H1 profits sour on strong peso
- H1 net profits sink by 14.6% to CLP16bn (US$34.4m)
- Net sales rise by 10% to CLP183.2bn
- Operating profits fall by 8% to CLP19.1bn
- Strong peso, high grape costs wipe out sales boost
Concha y Toro profits suffer in H1
Concha y Toro has seen its half-year profits soured by Chile's strong peso currency and higher grape costs, despite a strong rise in net sales for the period.
Net profits for the six months to the end of June dropped by 14.6% to CLP16bn (US$34.4m), Concha y Toro said late last week. Operating profits sank by 8% on the same period of last year, to CLP19.1bn.
The Casillero del Diablo winemaker blamed Chile's strong peso currency and higher grape costs for wiping out the benefits of a 10% rise in net sales, which reached CLP183.2bn. The figures will add to concerns about the financial pressure that Chile's currency is exerting on the country's young wine industry.
Concha y Toro' sales were partially boosted by its acquisition of Fetzer Vineyards, which accounted for 6.6% of net sales in the first-half. However, the firm said that export sales decreased by volume "in many areas" in the second quarter.
For the three months, the volume of the group's exports to Europe sank by 13%, while exports to the US slid by a third against the same quarter of 2010. The company sent 6% less wine to Asia in the period.
For the company's announcement, click here.
The final part in Euromonitor's preview of 2012 for now - soft drinks & water will be covered in the coming days - concerns itself with wine. Spiros Malandrakis and Jeremy Cunnington, alcoholics drink...
The final part of just-drinks' December management briefing, looking back over the past 12 months, reviews what 2011 meant for the global wine industry. Ben Cooper reports....
- Chile's winemakers caught out by Brexit "disease"
- Interview - Pernod Ricard's luxury director
- What's coming up in wine in 2017? - Comment
- The just-drinks Analyst - 2017 forecasts
- What's coming up in beer in 2017? - Comment
- Diageo Australia names new commercial head
- Suntory sends staff to fat camp - report
- "Beer and weed are complements" - analyst
- Pernod Ricard's Absolut Lime - NPD
- Irish whisky exports forecast to double by 2020
- Global vodka insights - market forecasts, product innovation and consumer trends
- The Next Seven Big Beverage Markets
- Global Cognac insights - market forecasts, product innovation and consumer trends
- Global gin insights - market forecasts, product innovation and consumer trends
- Darker Than Before: Global Prospects for Brown Spirits