Concha y Toro Falls in Chile as Profit Trails Estimates
Concha y Toro declined 0.2 percent to 963.4 pesos at 1:51 p.m. in Santiago and earlier slid to 936.8 pesos, its lowest intraday price since Jan. 30. The Ipsa (IPSA) benchmark index retreated 0.4 percent.
The company reported annual profit of 30 billion pesos ($64 million), below an average estimate of 35.6 billion pesos, according to a Bloomberg survey of four analysts. It said earnings before interest, tax, depreciation and amortization, or Ebitda, reached 53.4 billion pesos, versus an estimate of 58.8 billion pesos.
Concha y Toro’s margins contracted in the period as the peso strengthened versus the Brazilian real and the euro and as bulk grape prices rose, Banchile Inversiones said in an e-mailed note today.
“Administrative costs also rose, as the company opened new commercial offices,” Banchile said. “We can’t rule out downward pressure on the stock.”
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