CANADA: Record sales and income for Vincor
Vincor International has released its year-end financial results for the 12-months to 31 March 2004. Net sales for the year hit C$476.1m and record net income reached C$46.3m. This represents a 10% increase over net sales and a 16% rise over net income year-on-year.
This sales and income growth includes the impact of the strengthening Canadian dollar which reduced net sales by C$14.4m and net income by C$900,000. Since Vincor reports its results in Canadian dollars, revenue from US sales was reduced by the translation impact of the strengthening Canadian dollar. Excluding the impact of currency translation, net sales increased by 13% and net income by 19% year-on-year.
Operating income for the company rose to C$77.9m from the C$71.1m reported a year ago, representing an increase of 10%, which increases to 14% excluding the impact of currency translation.
Of the 10% increase in revenue, over half (55%) was due to the contributions of Vincor's recent acquisitions: Goundrey Wines and Amberley Estates of Western Australia; and Kim Crawford Wines of New Zealand, with the remainder resulting from higher premium wine sales and organic growth.
Diluted earnings per share in fiscal 2004 increased by 12% to C$1.64 compared with C$1.46 reported in the prior year. EPS growth was lower than that of net income growth, reflecting the four-cent-per-common-share dilution that followed the issuance in February, 2004, of 6,037,500 common shares for net proceeds of C$165.6m. The impact of translation also reduced EPS by C$0.04.
"In fiscal 2004, we continued to successfully execute on all points of our strategy by pairing growth from acquisitions with the ongoing shift of our portfolio to premium wines and steady organic growth across all aspects of our base business," said Donald L. Triggs, Vincor's president and chief executive officer.
"During the year, we greatly enhanced our presence in the Oceania region with the acquisitions of Kim Crawford Wines of New Zealand and Amberley Estates of Western Australia. These acquisitions move us towards critical mass in this important New World wine region," Triggs added.
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