Vina Concha y Toro, a Chile-based producer of red and white wines, has reported a net income of CLP$5,231m ($10.7m) for the first quarter ended 31 March 2012, down 19.3% from the same period in 2011.

Total sales increased 11.6% to CLP$88,857 ($182.29m) for the first quarter of 2012.

This increase is mainly due to the incorporation of Fetzer which was acquired in April 2011 and an increase in sales of other products in Chile.

However, the bottled export sales in Chilean pesos decreased by 4.8%.

The decrease in export sales was driven by an 11.7% decrease in volumes commercialised.

The bottled exports shipments of the company decreased 11.7% to 4,021,000 cases.

Vina Concha y Toro reported an increase of 6.2% in the bottled export price.

Bottled wine domestic sales in Chile decreased 0.3% by value and decreased 14.3% by volume.

Domestic sales of new business (liquor and beer) in Chile increased 31.7% and represented 31.8% of total domestic sales.

Volume sales during the quarter fell but it expects sales to pick up in the second quarter, cited the company.

The company said, "In this quarter, we faced a strong Chilean peso, higher wine cost due to the full incorporation in our margins of the harvest 2011, and a decrease in volumes in the export markets."

Concha y Toro’s portfolio of wines include Carmin de Peumo, Amelia, Terrunyo, Marques de Casa Concha, Gran Reserva Serie Riberas, Trio, Casillero Del Diablo, Sunrise, Sendero, Frontera, Don Melchor and Gravas del Maipo among others.