The Australian wine group, Xanadu Wines, has confirmed its forecast for a net profit of A$2.4m for the fiscal year ending in June 2004, which it issued in June.

"The increase in profitability is expected from increased revenues, improved efficiencies and the benefits of our ongoing cost reduction programme," said acting CEO, Sam Atkins who replaced Andrew Moore as the company's head last month.

"We have entered into new distribution arrangements for the Normans and NXG brands in the key USA market with the initial orders being shipped in the first quarter of this financial year," Atkins said. "The NXG Vinfive brand is exceeding expectations in the UK. We are also working hard to improve our product mix to improve both per case revenues and margins."

Atkins added that Xanadu was forecasting sales for 2003/04 of A$29m.