Concha y Toro raises glass to weaker Chilean peso as profits rise
SANTIAGO Nov 28 (Reuters) - Chilean wine producer Concha y Toro reported a 15 percent rise in core earnings in the third quarter, boosted by a favorable exchange rate and higher sales prices, the company reported on Friday.
Concha y Toro, one of the world's biggest wine producers and the company behind the 'Casillero del Diablo' brand, reported earnings before income, tax, depreciation and amortization (EBITDA) at 21.5 billion Chilean pesos ($35 million) in the three months to end-September.
Revenues rose 10 percent from last year to 148 billion Chilean pesos, although sales by volume slipped on a high comparative.
Chile's peso has depreciated by over 13 percent against the dollar this year, lending a hand to exporters - particularly wine producers, who typically export over 90 percent of what they make.
Concha y Toro's biggest export market is Europe, including Britain, where it is a sponsor of soccer club Manchester United.
It also owns vineyards in Argentina and the U.S., and said on Friday that revenues at its Californian Fetzer brand rose 16 percent as wine prices in the U.S. domestic market increased 6 percent.
The amount of wine produced worldwide is expected to fall in 2014 compared to last year, including in Chile, due largely to poor weather in many producer countries.
(Reporting by Rosalba O'Brien; Editing by Chris Reese)
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