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The Chilean wine manufacturer Viña Concha y Toro (NYSE:VCO) reported 14.8% growth in sales for 2008 despite unfavorable exchange rates in the first half of the year. Net Income was down 5.2% year-on-year because of significantly lower Non-operating Result.

Total sales revenues for 2008 reached Ch$322 bln, up 3.5% from the Ch$311 bln reported in 2007. However, Sales & Administrative Expenses grew 4.6% to Ch$77.3 bln, which offset this improvement, leaving the Operating Income 0.3% below the 2007 numbers at Ch$51.3 bln.

The Non-operating Result also deteriorated, and fell nearly Ch$1.4 bln, to a loss of Ch$1.08 bln. The Net Income of Ch$35.15 bln is equivalent to Ch$48.88 per share, or Ch$977 per ADR (1:20).

According to market, VCO's exports grew 12%, which was caused by an 8.1% increase in volume, and 3.6% rise in prices. Domestic sales declined by 3.5% because of a 7.2% decline in volume, which offset the 4% rise in prices.

Europe continues to be the company's main export market, with 49.3% of total exports being shipped there. The US and South America follow with 16.1% and 10.0% respectively.

At the end of 2008 the company held Ch$167 bln in Current Liabilities, with Long-term Liabilities at Ch$106 bln, and Ch$263 bln in Equity. Financial Expenses during the year were Ch$6.38 bln. Cash & Cash Equivalents fell 25.5% during the year, to Ch$2.94 bln.

At the current price of US$32.55 per ADR the company trades at a P/E of 19.11, which reflects a Market Cap of US$1.17 bln. The ADR has a twelve-month performance of (-12.31%).

VCO's latest financial statements can be found here.

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Source: Vina Concha: 2008 Growth in Sales Despite Unfavorable Exchange Rates