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

 

Delegat continues to invest after record year


By Victoria Young

Aug. 23 (BusinessDesk) - Delegat Group, New Zealand’s biggest listed winemaker, lifted operating net profit by 14 percent in the June 2019 year, but indicated it was unlikely to make further gains next year.

The winemaker, whose stable includes the Oyster Bay brand, posted a record operating net profit of $51.4 million for the 12 months to June 30. The earnings measure strips out movements in the fair value of its grape inventory and derivatives.

Delegat posted operating earnings before interest, tax depreciation and amortisation at $99.3 million from $89.6 million, an 11 percent boost.

The company sold more than 3 million cases globally, up 10 percent on a year earlier. Revenue rose 9 percent to $278 million.

In a presentation filed to the NZX, group chairman Jim Delegat said the record results were a testament to the strength of its business model.

“Delegat is investing to support its strategic goal building a leading global Super Premium wine company,” he added.

Delegat saw a 30 percent gain in case sales in its second-biggest market, the UK, Ireland and Europe.

Sales in its largest market of North America were up 7 percent while Pacific sales dropped by 2 percent to 780,000 cases.

During the period, $32.9 million was invested in growth assets, while another $43.3 million is earmarked for 2020.

“This capital investment supports the group’s plan to grow sales to 3,651,000 cases by 2022 and will provide for further growth beyond that period,” Delegat said.

The company is forecasting an 8 percent rise to 3.24 million cases next year. It said based on prevailing exchange rates its operating profit would be in line with this year’s performance.

Net profit, which including the fair value adjustments, increased to $47.4 million from $46.8 million. Delegat reported a $4 million fair value write-down in the latest period, compared to a $1.9 million write-up.

Drivers of growth will be Oyster Bay sales in North America, and Barossa Valley Estate wines around the world, managing director John Freeman said.

The board declared a 17 cent final dividend, payable Oct. 19 with a Sept. 27 record date.

The shares last traded at $11.72 and have gained 19 percent so far this year.

(BusinessDesk)

ends

© Scoop Media

 
 
 
Business Headlines | Sci-Tech Headlines

 

SMC Expert Reaction: Record Dry Spells And Effects On Forests

With no rain forecast before Sunday, Auckland is about to break a record for the city's longest dry spell. Niwa says Auckland is likely to hit 40 consecutive days without rain this weekend . The upper North Island is seeing severe meterological ... More>>

ALSO:

Reserve Bank: Official Cash Rate Remains At 1.0 Percent

The Monetary Policy Committee has decided to keep the Official Cash Rate (OCR) at 1.0 percent. Employment is at or slightly above its maximum sustainable level while consumer price inflation is close to the 2 percent mid-point of our target range. ... More>>

ALSO:

Research: Climate Change Throws Tree Seeding Out Of Sync – New Study

Climate change is negatively affecting tree reproduction by throwing seed production systems out of synchronisation, according to a new international study co-authored by a University of Canterbury scientist. Many tree species worldwide produce large ... More>>

ALSO:


Science Media Centre: Novel Coronavirus Detected In China – Expert Reaction

The virus was detected after more than 40 people were hospitalised with pneumonia in Wuhan City, China and the outbreak traced to a large animal and seafood market. The Centers for Disease Control and Prevention reports that person-to-person transmission ... More>>

ALSO:

Science Media Centre: Flooding could release toxic gas – Expert Reaction

A chemical substance known as ouvea premix stored at an old paper mill in Mataura could release toxic ammonia gas if it comes in contact with water.More>>

ALSO: