Australian wine producer Dromana Estate has admitted its first-half performance was "unacceptable" after seeing losses quadruple.

Dromana today (28 February) posted a loss of A$724,862 (US$571,288) for the six months to 31 December. Losses, the company said, had grown by 220%. Revenues were down 6% to A$1.5m.

Dromana said it is in the middle of a cost-cutting programme that, it hoped, would save the company around A$500,000 a year.

The company noted there had already been a "major reduction" in staff overheads, which should this year save it around A$300,000.

Dromana said its overall sales had been maintained during the first half of its financial year due to a dedicated sales and marketing programme. For the year to 30 June, Dromana said it expects sales to be above those achieved in the corresponding period last year.