• Full-year net losses total AUD1.97m
  • Net sales in the 12 months to the end of June lift 5.2% to AUD242.7m
  • Operating profits (EBIT) tumble 82% to AUD3m
Australian Vintage announced their full-year results last week

Australian Vintage announced their full-year results last week

A lease termination and the UK's Brexit vote have dragged down full-year net profits for Australian Vintage. 

The Australian wine company made a net loss of AUD1.97m in the 12 months to the end of June, owing largely to a AUD9.2m (after tax) hit following the early termination of a vineyard lease. Stripping out the costs, the company said net profits after tax were AUD7.2m, compared to AUD7.1m in 2015.

Meanwhile, Australian Vintage described the UK's decision to leave to European Union as a "surprise". The UK is the company's main overseas market. 

"The year was shaping up to deliver a 16% net profit (before one-off items) growth but the unexpected outcome of the Brexit vote in the UK unfortunately impacted our result by AUD1.1m after tax," said chief executive Neil McGuigan. "This has not changed our commitment to the UK and we are working with our retailer and distributor partners to recover lost margins caused by the weakening GBP."

Elsewhere, the company reported a 5.2% lift in net sales for the full year, to AUD242.7m.

"Over the last five years, sales of AVL's three key brands - McGuigan, Tempus Two and Nepenthe - have almost doubled, as we continue to transition the business from a bulk wine producer to a quality branded bottled wine business. At the same time the contribution from our bulk and processing business in Australia and overseas declined by AUD14m due to market conditions," McGuigan added. 

The CEO said branded sales into Asia had grown 89% over the past five years and 128% in Canada during the same period. "We expect this trend to continue," he said.

To read the official statement, click here