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


Commerce Commission: Latest Broadband Report Confirms Improved Performance Of Premium Fibre Plans

The latest report from the Commerce Commission’s Measuring Broadband New Zealand programme shows that the performance of Fibre Max plans has improved substantially. This follows a collaboration between the Commission, its independent testing partner, ... More>>

Air New Zealand: Capital Raise Deferred

Air New Zealand has decided to defer its planned capital raise to later in 2021 allowing more time to assess the impacts of recent developments on the airline’s path to recovery. 'We’ve seen some clearing of COVID-19 clouds recently, with ... More>>

Commerce Commission: Cartel Conduct Now Punishable By Up To 7 Years’ Jail Time

Cartel conduct can now be punished with a term of imprisonment of up to 7 years, after the Commerce (Criminalisation of Cartels) Amendment Act 2019 came into effect today. Cartel conduct includes price fixing, market allocation and bid rigging (see ... More>>

Stats NZ: Auckland Population May Hit 2 Million In Early 2030s

Auckland’s population may rise from about 1.7 million currently to 2 million by early next decade, Stats NZ said today. “Auckland will likely have the highest average annual growth of New Zealand’s 16 regions over the next 30 years, from ... More>>

Stats NZ: New Report Shows Impact Of Demands On Land In New Zealand

A new environmental report released today by the Ministry for the Environment and Stats NZ, presents new data on New Zealand’s land cover, soil quality, and land fragmentation. The land cover data in the report, Our land 2021 , provides the most ... More>>


Stats NZ: March Card Spending Rebounds Despite COVID

There was a lift in retail card spending in March following a fall in the lockdown-disrupted February month, Stats NZ said today. Seasonally adjusted retail card spending rose by $53 million (0.9 percent), compared with February 2021. Visit our website to read ... More>>

PwC: Outcome Of Review Into Air New Zealand Gas Turbines Business

Air New Zealand has received the report into its Gas Turbines business from independent external advisers PwC. Air New Zealand Chairman Dame Therese Walsh says the report identified a range of effective controls in the Gas Turbines revenue contracting ... More>>