Vina Concha y Toro has rescued its first half performance from a troublesome start, with healthy figures across the board in the second quarter of the year.

The Chile-based wine producer and exporter said yesterday (6 August) that net profit for the three months to the end of June registered an 18.5% increase on the same period a year earlier, coming in at CLP11.33bn (US$21.5m). Sales were up less impressively, by 3.4% to CLP76.86bn, with operating profit lifting by 2.8% to CLP13.81bn.

In April, Concha y Toro posted a 7.6% slide in net profit for its first quarter, coming in at CLP5.78bn (US$12.7m). Sales followed suit in Q1, albeit less markedly, slipping by 1.9% to CLP57.63bn. Operating profit was also down, by 3% to CLP8.61bn.

Despite the slow start to the year, the company saw sales in the first half of the year level off, up by 1% to CLP135.87bn, with net profit climbing by 7.9% to CLP17.11bn. Operating profit was also flat, up by 0.5% to CLP22.63bn.

"During this period, the company has implemented price increases in the domestic and export markets with the aim of sustaining overall margins and profitability," said Conch y Toro's CEO, Eduardo Guilisasti. "This has impacted volume growth, mainly in the domestic market, as exports continue their strong momentum."

While domestic market sales fell by 1.1% in the quarter, following a 6.1% increase in the average price offset by a 6.8% decrease in volume, Conch y Toro highlighted the continuing strong performance of its exports. Sales abroad were up in value terms by 28.2% in Q2, thanks to "a better sales mix driven by growth in the premium and varietal categories and the positive results of the company's subsidiaries".