USA: Mondavi profits up, but warns of future losses
"We are pleased with the progress we made during the quarter on improving the margins of our core brands, while growing shipments 10%," said the company's president and CEO, R. Michael Mondavi.
Sales of Woodridge, Mondavi's biggest brand, grew 12% to $65.5m and shipments rose 8% to 1.7m cases.
While its flagship brand, Robert Mondavi rose 47% to $17.1m and revenues of other Mondavi brands rose 43% to $4.6m.
Poor results from its new $12m wine centre at Disneyland, California was blamed for affecting its overall profit.
And at a conference call Mondavi said of the Golden Vine Winery: "The startup is going slower than we had planned." But the company still expects the attraction to break even. However, Mondavi also said that the company does not expect it to meet its goal of turning a profit this year.
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