AUS: Australian Vintage weathers tough market as FY profits rise
- FY net profits rise by 8% to AUD7.1m (US$7.4m)
- Net sales edge up by 2% to AUD228m
- Operating profits rise by 3.5% to AUD23.4m
- Group "realistically cautious" about market's short-term recovery
Australian Vintage saw FY profits bounce back
Australian Vintage has seen its full-year net profits bounce back despite the global wine market remaining "challenging".
In the 12 months to the end of June, net profits rose by 8% to AUD7.1m (US$7.4m), the Australian wine group said today (22 August). Sales edged up by 2% to AUD228m.
Operating profits rose by 3.5% to AUD23.4m in the period.
Chief executive Neil McGuigan said: “This result demonstrates how we have made our business more robust and capable of better withstanding the global pressures.
"The industry has had to weather one of the strongest AUD (Australian Dollar) in decades, ongoing over production worldwide and very tight margins.
“Despite these conditions we maintained sales and profit in the period."
The group's flagship McGuigan brand grew in both domestic and export markets, overall by 17% in volumes to 2.4m cases, the group said.
In Australasia/North America group sales grew by 12% to AUD6.4m as "improved branded sales partially offset reduced lower margin cask sales", the company said. In the UK and Europe, sales were up by 32% to AUD7.1m, as growth in branded sales helped "unfavourable" foreign currency movements.
However, in Australasia/North America bulk wine and processing segment sales fell by AUD4.2m due to "lower margins from contract processing and the higher costs associated with leasing a portion of the Loxton winery for the Austflavour business", the company said.
Last financial year, Australian Vintage saw a slide in FY profits, as it was hampered by a AUD3m charge on the sale of its Loxton winery.
To view the company's full announcement, click here
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