The Spanish winemaker Federico Paternina has reported a first half net loss of €2.8m, compared to a loss of €2.26 million for the same period last year.

The company blamed the poor 1999 harvest, but assured that the second half should improve once it begins selling the better 2000 vintage.

Sales for the period reached €17.08m, an increase on the €14.42m a year ago.