Delegat lifts full-year earnings guidance on sales growth

Delegat lifts full-year earnings guidance on sales growth, weaker kiwi dollar

By Jonathan Underhill

Dec. 5 (BusinessDesk) - Delegat Group, New Zealand's largest listed winemaker, lifted its 2018 earnings guidance, saying it's benefiting from sales growth and a weaker kiwi dollar.

Operating profit in the 12 months ending June 30, 2018, is expected to be $40.7 million, the company told shareholders at their annual meeting in Auckland today. That's up from the forecast it gave with the release of its 2017 results in August when it said operating profit would be in line with 2017's record $38.5 million.

Delegat is on track to reach its full-year target of lifting case sales by 5 percent to 2.78 million cases, outgoing managing director Graeme Lord said. Lord is stepping down in July next year when John Freeman will take over the role. Freeman has been managing director designate since Nov. 1.

The company has a target of lifting sales to 3.69 million cases by 2022, driven by growth in sales of Oyster Bay wines in North America and Barossa Valley Estate sales globally.

Delegat shares rose 2 percent to $7.65 and have gained 29 percent this year.

(BusinessDesk)

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