CANADA: Vincor celebrates FY and Q4 results
Vincor International has posted its financial results for the quarter and year to 31 March. The Canada-based company said yesterday (2 June) that net sales for the year were up by 37% year-on-year, reaching C$653.9m (US$524m).
Net income for the year was C$48.7m, or C$1.44 per diluted share, compared with C$46.3m, or C$1.64 per diluted share, in fiscal 2004. While the net income for 2005 increased by 5% over last year, earnings per share were lower by C$0.20 as a result of the dilutive effect of additional shares from the company's February 2004 equity financing, the proceeds of which were used to fund the acquisition of Western Wines.
"In 2005 all of our core premium brands displayed strong performance, with an increase in the sales of our Kim Crawford brand by 90%, Toasted Head by 16%, and Jackson-Triggs, Inniskillin and Kumala each by 13% over the prior year," said Donald Triggs, Vincor's president and CEO. "With the acquisition of Western Wines last year, we gained an extensive portfolio of brands, including Kumala from the fast-growing South African wine region, and added significant distribution in the UK, which gives us sales and distribution coverage in all key New World wine markets. As we aim to become one of the world's top five wine and related product companies, one of our main objectives is to leverage this global network to increase cross-border sales of our focus brands."
For the three months to 31 March, net sales increased by 49% to C$168.9m. Net income for the fourth quarter rose 24% over the prior year to C$8.3m, or C$0.25 per diluted share.
"While a heightened competitive environment has affected early results from Western Wines, we saw improvements as sales in the UK grew solidly in the fourth quarter of 2005," Triggs added. "In the US, we believe the grape supply is approaching balance with demand, and is beginning to translate into lower levels of discounting than we witnessed during 2004. Another large harvest in Australia has confirmed that their excess supply situation in premium red wine will continue for some time. As a result, we expect continuing high levels of price competition for these products around the world."
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