Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 


Delegat’s 1H earnings fall 7.6% as UK, Europe sales drop

Delegat’s first-half earnings fall 7.6% as UK, Europe sales drop

By Suze Metherell

Feb. 27 (BusinessDesk) - Delegat’s Group, the winemaker which last year bought Australia’s Barossa Valley Estate, said first-half profit fell 7.6 percent as sales drop in the UK and Europe and costs rose.

Net profit was $17.8 million for the six months ended Dec. 31, down from $19.3 million a year earlier, the company said in a statement. Sales slipped 1.8 percent to $121 million, although overall revenue rose to $130 million from $129 million including fair value adjustments on biological assets and currency hedging.

The Auckland-based winemaker reported a record operating profit, which doesn’t reflect fair value adjustments, of $20.2 million, up from $19.2 million.

Delegat’s, which counts Oyster Bay among its brands, spent $73.7 million over the 2013 financial year on Kaituna Vineyard in Marlborough, Matariki Vineyard in Hawkes Bay, Barossa Valley Estate in South Australia, while expanding existing facilities. The winemaker pitches its Oyster Bay and Barossa Valley Estate wines as super-premium brands and plans to spend a further $132 million over the next three years to support sales growth, especially in the North American market.

The company said global cases sales were down 1 percent to 1.083 million sold in the first half, as a strong kiwi dollar impacted on income.

Sales in the UK, Ireland and Europe fell 14 percent to 348,000 cases, while North American sales gained 15 percent to 356,000 cases and Australia, New Zealand and Asia Pacific sales were unchanged at 379,000. The case price, which is sensitive to currency movements and product mix, fell 1 percent to $111.9.

New Zealand sales for its Delegat’s Wine Estate unit fell 9.1 percent to $106 million. Oyster Bay Wines Australia dropped 13 percent to $36.5 million, Delegat’s Wines UK slipped 0.5 percent to $33.7 million and Oyster Bay Wines USA sales grew 19 percent to $23.4 million.

Expenses rose 8.3 percent to $49.96 million, reflecting increases in administration, marketing and finance costs, it said.

The company affirmed guidance given at its December annual meeting for operating earnings to be $29 million for the full-year, up from $26.3 million a year earlier.

The shares were unchanged at $3.80 and have gained 1.3 percent this year.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

BusinessDesk: SkyCity Lifts Minimum Convention Centre Investment To $430M

SkyCity Entertainment Group, the casino operator, has lifted the minimum it will invest in the Auckland International Convention Centre to $430 million and said total costs including land may be $450 million to $470 million. More>>

Statistics: Drop In Dairy Prices Leads Fall In Exports

Total goods exports fell $240 million (5.5 percent) to $4.2 billion in April 2015 compared with April 2014, Statistics New Zealand said today. More>>

BusinessDesk: APN's NZME Sees Future In Paywalls, Growth In Digital Sales

APN News & Media has touted a single newsroom concept for its NZME unit in New Zealand, similar to what Germany's Die Welt uses, saying an 'integrated sales proposition' is helping it win market share, including ... More>>

Labour Party: Global Milk Prices Now Lowest In 6 Years

The latest fall in the global dairy price has brought it to the lowest level in six years and shows there must be meaningful action in tomorrow’s Budget to diversify the economy, says Labour’s Finance spokesperson Grant Robertson. “Dairy prices ... More>>

BusinessDesk: NZ Inflation Expectations Creep Higher In June Survey

May 19 (BusinessDesk) - New Zealand businesses lifted their expectations for inflation over the next two years, sapping any immediate pressure on the Reserve Bank to cut interest rates, and prompting the kiwi dollar to jump higher. More>>

BusinessDesk: Lower Fuel Costs Drive Down NZ Producer Input, Output Prices

May 19 - Producer input and output prices fell in the first quarter, mainly reflecting lower fuel costs and weakness in prices of meat and dairy products. More>>


Media: Fairfax Media NZ Announces Senior Editorial Team

Fairfax Media New Zealand has today confirmed its new editorial leadership team, as part of a transformation of its newsrooms aimed at enhancing local and national journalism across digital and print. More>>

Science: Flavonoids Reduce Cold And Cough Risk

Flavonoids reduce cold and cough risk Research from the University of Auckland shows eating flavonoids – found in green tea, apples, blueberries, cocoa, red wine and onions – can significantly reduce the risk of catching colds and coughs. The research, ... More>>

BusinessDesk: RBNZ House Alert Speech The Catalyst For Government Action

Prime Minister John Key all but conceded that pressure from the Reserve Bank of New Zealand for concerted action on rampant Auckland house prices was one of the main catalysts for the government's weekend announcements about tightly ... More>>

BusinessDesk: How To Fall Foul Of The New Housing Tax Rules: Tips From IRD

Just because you rented out your investment property doesn't absolve you from paying tax, says the Inland Revenue Department in a summary of commonly made mistakes by non-professional property investors when it comes to their tax liability.More>>

Legal: Superdiversity Law, Policy And Business Stocktake Announced

Mai Chen, Managing Partner at Chen Palmer New Zealand Public and Employment Law Specialists and Adjunct Professor of Law at the University of Auckland, today announced the establishment ... More>>

Housing: More House Price Gains Expected

House price expectations remain high, with a net 56% of respondents expecting house prices will increase. Fears of higher interest rates are fading, consistent with the RBNZ’s signals this year. Affordability and a lack of houses for ... More>>

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news