Concha y Toro Falls in Chile as Profit Trails EstimatesEduardo Thomson
Vina Concha y Toro SA, Chile’s largest wine exporter, fell to its lowest level in two months after reporting profits that trailed analyst 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 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.”