Scoop has an Ethical Paywall
Work smarter with a Pro licence Learn More

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

 

Delegat lifts first-half profit 5% on record wine sales

Delegat lifts first-half profit 5% as wine sales rise to a record

By Tina Morrison

Feb. 26 (BusinessDesk) - Delegat Group, New Zealand’s largest listed wine company, boosted first-half operating profit 5 percent as wine sales rose to a record.

Profit excluding one-time movements in the value of its assets rose to $21.5 million in the six months ended Dec. 31, from $20.5 million in the year earlier period, the Auckland-based company said in a statement.

Net profit almost doubled to $19.2 million, or 18.95 cents per share, from $9.8 million, or 9.67 cents, the year earlier as the company's vines, grapes and derivative financial instruments were written down by $2.3 million, compared with a $10.7 million write down in the year earlier period.

Delegat is expanding its vineyards and targeting increased exports as it seeks to build a leading global "super premium" wine company with its Oyster Bay and Barossa Valley Estate wine brands. It spent $55.9 million investing in property, plant and equipment in its vineyards in the first half of this financial year, up from $34.3 million in the same period a year earlier.

“Delegat Group is well positioned to pursue its strategic goal to build a leading global Super Premium wine company and deliver sustainable earnings growth in the years ahead,” said executive chairman Jim Delegat.

The company increased case sales of wine 12 percent to a record 1,267,000.

Its North American market took 12 percent more cases to 476,000. Case sales rose 8 percent to 407,000 in Australia, New Zealand and the Pacific and 17 percent to 384,000 in the UK, Ireland and Europe.

Advertisement - scroll to continue reading

Are you getting our free newsletter?

Subscribe to Scoop’s 'The Catch Up' our free weekly newsletter sent to your inbox every Monday with stories from across our network.

Delegat said it’s on track to increase full-year case sales 8 percent to 2,379,000.

The company reiterated its previous forecast for a 5 percent increase in full-year operating profit to $36 million.

In the first half, revenue increased 23 percent to $140.3 million.

Operating revenue, which excludes one-time fair value adjustments, increased 19 percent to $128.6 million. Operating expenses rose 26 percent to $38.2 million as a weaker New Zealand currency made its overseas investments in sales and marketing more expensive.

Its shares last traded at $5.93 and have gained 29 percent the past year. The stock is rated a ‘hold’ according to three analyst recommendations compiled by Reuters.

(BusinessDesk)

© Scoop Media

Advertisement - scroll to continue reading
 
 
 
Business Headlines | Sci-Tech Headlines

 
GenPro: General Practices Begin Issuing Clause 14 Notices

GenPro has been copied into a rising number of Clause 14 notices issued since the NZNO lodged its Primary Practice Pay Equity Claim against General Practice employers in December 2023.More

SPADA: Screen Industry Unites For Streaming Platform Regulation & Intellectual Property Protections

In an unprecedented international collaboration, representatives of screen producing organisations from around the world have released a joint statement.More

 
 
 
 
 
 
 
 
 
 
 
 

Join Our Free Newsletter

Subscribe to Scoop’s 'The Catch Up' our free weekly newsletter sent to your inbox every Monday with stories from across our network.