The Australian wine company, Peter Lehmann Wines (PLW), has reported a net profit for the year to June of A$5.4m, representing a 22% decline from last year. The company attributed the decline to discounting from major competitors and over-supply in the domestic wine market.

PLW said revenues rose by 3% to A$46.6m but it added that growth slowed in the second half to 1%. Sales growth in the first half to the end of December had been 6%.

Exports rose by 19% in volume terms and by 10% in value terms. Exports represented 58% of total branded wine sales volumes, with the UK the company's largest market.

"Gains in distribution, particularly with regional wholesalers and on premise outlets, together with the acceptance of the Weighbridge and Wildcard ranges, saw volumes grow by 10% over the past 12 months (in the UK)," the company said. "Revenue (from the UK) was down 4% for similar reasons that are affecting the domestic market. While this market will continue to remain extremely competitive, the company expects to see further growth and improved returns over the next 12 months."

PLW was bullish about the coming year. While the international market remained extremely competitive, the company said that trading in Australian markets was returning to a more steady pattern after the discounting seen over the past 12 months. "With the strength of its brand and its network of distributors, Peter Lehmann Wines is planning to significantly exceed last year's profit result," the company said.