• Q1 net profits fall by 0.7% to CLP6.48bn (US$13.8m)
  • Operating profits up by 1.4% to CLP7.1bn
  • Net sales rise by 17% to CLP79.5bn
  • Demand remains strong but exchange rate bites
Vina Concha y Toro has reported a dip in Q1 profits

Vina Concha y Toro has reported a dip in Q1 profits

Vina Concha y Toro has reported a slight dip in first quarter net profits, despite a strong rise in wine sales.

Concha y Toro's earnings are under pressure from the strengthening of the Chilean peso currency against those currencies used by its major export markets, namely the US dollar and UK sterling. Currency played a hand in the group's 0.7% drop in net profits for the three months to the end of March, to CLP6.48bn (US$13.8m).

Before income tax charges, which came in lower than in the same period of last year, profits for the quarter dropped by 4%. However, operating profits increased by 1.4% to CLP7.1bn, according to Concha y Toro's accounts, which were published yesterday (11 May) as part of the company's presentation to analysts in London.

Despite the pressure on profits, the Casillero del Diablo winemaker reported net sales up by 17% for the quarter, to CLP9.5bn. Exports drove the increase, with bottled wine exports up by 29% in value to CLP123.4bn.

In US dollar terms, average price per case of Concha y Toro's exports rose by 3.4% in the quarter.

The company's Q1 statement is detailed in a presentation to analysts, published yesterday (12 May). To view it, click here.