• 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 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.