AUS: Australian Vintage optimistic despite flat FY profits
- FY net profits flat at AUD7.1m (US$6.3m)
- Net sales in year to end of June fall 8.5% to AUD208.5m
- Pre-tax profits up 17.3% to AUD10.5m
AV saw a drop in FY sales while net profits were flat
Australian Vintage has reported a drop in full-year sales while net profits were flat as trading conditions remained “difficult”.
Net profits in the 12 months to the end of June were flat at AUD7.1m (US$6.3m), the company reported late last week. Group sales in the period fell by 8.5% to AUD208.5m, while pre-tax profits were up by 17.3% to AUD10.5m.
The group's sales of bulk wine in Australasia and North America were particularly affected, falling by 27.2% to AUD29.5m. UK and European sales were also hit, down by 8.7% to AUD88.8m.
The only slight rise came from packaged wine in Australasia and North America, with sales growing by 0.7% to AUD79.9m.
“Despite the difficult trading conditions, the comparatively small 2012 vintage and uncertain economic conditions, we maintained our profit and return to shareholders,” said CEO Neil McGuigan.
Looking ahead, McGuigan said that the recent weakening of the Australian dollar and the group's “increased brand success”, should improve margins and profitability in 2014 on branded product. But, he added: “Non-branded bulk wine margins could be challenging”.
Australian Vintage chairman, Ian Ferrier added: "We are also continuing to build opportunistically on Australia’s reputation as a quality new wine producer in Asia."
Earlier this year, McGuigan told just-drinks that the strength of the Australian dollar was not the sole reason for companies struggling in the country.
To read the company's full statement, click here.
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