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


Delegat to pay bigger dividend

Delegat to pay bigger dividend after posting record annual operating profit

By Paul McBeth

Aug. 26 (BusinessDesk) - Delegat Group will pay a bigger dividend to shareholders after reporting a record operating profit for the 2016 financial year, with North American sales driving revenue growth.

The Auckland-based company's board declared a dividend of 12 cents per share payable on Oct. 14 to shareholders on the register on Sept. 30, up from 11 cents it's paid in the past two years. The winemaker reported a record operating profit of $37 million, on a 9 percent increase in global case sales to a record 2.41 million, including 1 million cases sold in North America.

"The directors consider that the underlying operational performance and strong cash flows justify an increase in dividends this year," executive chairman Jim Delegat said.

Delegat primed the market for the record result with guidance in June on the profit and sales figures, and the shares were unchanged at $6.10 at the market open.

Net profit, which includes unrealised movements in the fair value of the winemaker's vines and grapes, rose to $54 million, or 53.39 cents per share, in the 12 months ended June 30 from $32.5 million, or 32.16 cents, a year earlier. Delegat's vine assets increased in value by $7 million in the latest year compared to a $19.3 million gain in 2015, while the grapes appreciated $11.8 million, turning around a $10.4 million charge a year earlier.

Delegat projects case sales to rise to 3.4 million by 2021 and plans to grow sales 9 percent in 2017. If the kiwi dollar stays at current rates, 2017 operating profit is projected to be in line with this year's record performance and if it declines to the average through the 2016 financial year, earnings are expected to rise at the same pace as sales.

Operating cash flow rose to $42.5 million from $36.5 million, while the firm's investing cash outflow increased to $115.5 million from $72.6 million. Delegat secured a $350 million banking facility in 2014, and had net debt of $282.7 million as at June 30, up 40 percent from a year earlier.


© Scoop Media

Business Headlines | Sci-Tech Headlines


$7.5 Billion Surplus: Government Accounts "Show Strong Economy"

“The surplus and low levels of debt show the economy is in good shape. This allows the Government to spend more on infrastructure and make record investments in health and education,” Grant Robertson says. More>>


New OIO Application Trumps Judicial Review: OceanaGold Cleared To Buy Land For Waihi Tailings Expansion

In a surprise turnaround, the government has given OceanaGold a greenlight to buy land to expand its Waihi mine after the application was previously turned down by Land Information Minister Eugenie Sage. More>>


Christchurch Rebuild: Fletcher Sued For $7.5m Over Justice Precinct

Fletcher Building is being sued for $7.5 million by utilities contractor Electrix, one of the subcontractors on the Christchurch Justice and Emergency Services Precinct. More>>

Three New Drugs: PHARMAC Signs Bundle Deal For More Cancer Medicines

420 New Zealanders with lung cancer, breast cancer, multiple sclerosis and respiratory disease will benefit each year from a bundle deal PHARMAC has finalised with a medicine supplier. More>>


"Levels Playing Field": Government Responds To Electricity Price Review

The changes announced today include: • Supporting new and independent retailers by requiring the big power companies to sell into the wholesale market at affordable rates. • Extending discount rates to all customers • A pilot scheme to help customers who have not switched power providers before to shop around for better deals... More>>