Delegat Hits Record Wine Sales In Half Year Result

Delegat Group has released its interim results today, announcing an operating profit of $40.2 million for the six months ending December 2022, a 2% increase from the previous corresponding half year.

The Group recorded operating revenue of $198.8 million after achieving record global case sales of 1.97 million cases over the six-month period. Managing Director Steven Carden said these were pleasing half-year results for the NZX-listed company.

“While there remain ongoing global economic pressures, Delegat Group’s strategy of expanding its winery and vineyard assets, combined with significant investment in in-market distribution and its brands, continues to pay off,” Carden said. “During the half-year Delegat Group purchased a previously leased vineyard in Marlborough for $39.9 million and invested $30.8 million in new vineyard developments and winery expansion to provide for future revenue and earnings growth.”

Revenue is up $20.1 million on the same period due to the increase in global case sales, including an 18% increase in USA and Canada markets, and the favourable impact of foreign exchange.

Operating expenses are $6.2 million higher compared to the same period in the previous year, largely due to foreign exchange, the resumption of normal sales and marketing activities post Covid-19 disruptions, and one-off software costs of $1.2 million due to the upgrade of a core software system.

Despite the significance of Cyclone Gabrielle to the Hawke’s Bay, Delegat remain on track for a successful harvest in the region, commencing around the end of February. Carden said they were fortunate their Hawke’s Bay winery and vineyards have not been damaged significantly by the cyclone.

“Our thoughts are with all those across the Hawke’s Bay impacted by the cyclone,” Carden said. “Our priority remains the safety and wellbeing of our employees and their families and we would like to thank our Hawke's Bay teams for their collective resilience, team spirit and positivity.”

Carden said that the full year operating profit guidance is now in the range of $59 million to $62 million.

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