Australian Vintage is now a “stronger, more agile business”, the wine group’s management has said, after 12 months of work to boost cash, bolster the company’s balance sheet and cut costs.
The group saw its annual losses grow in the year to the end of June amid an impairment charge on inventory, restructuring costs and a strengthening Australian dollar.
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The McGuigan brand owner’s revenue inched up 0.4% as growth in the second half offset lower sales in the first six months of the year.
Australian Vintage reported improvements in cash flow and said it had “focused on cash generation as a key measure of the underlying health and performance of the business”.
In a stock-exchange filing, the company said the 2025/26 financial year had been “a year of significant transformation” for the business.
“Through a disciplined focus on cash generation, cost optimisation and strategic brand acquisitions and innovation, including the successful launch of Poco Vino and other innovative brands, the group strengthened its portfolio, streamlined its cost base and enhanced operational performance,” Australian Vintage said.
Poco Vino is a single-serve wine brand sold in 187ml galss tubes. The company said it had sold more than two million “units” globally in the year to the end of June.
“These initiatives have positioned AVG as a stronger, more agile business, well placed to deliver sustainable growth and improved profitability in the years ahead,” Australian Vintage added.
“With these foundations established, AVG expects to deliver a net positive cash position for the full financial year FY27, reducing debt for the first time in years while accelerating the growth of global innovation Poco Vino and acquisitions as critical to the group’s strategy.”
Australian Vintage, which also markets wine brands including MadFish, booked full-year revenue of A$258m, up from A$257m a year earlier. Second-revenue grew 2%, the company said.
Gross profit stood at A$31.9m compared to A$69.4m a year ago due, in part, to the impairment.
The business reported operating cash flow of A$4m. A year earlier, Australian Vintage filed a negative cash flow from operations of A$8m. The company said it was the first time that metric had been in positive territory since its 2022 financial year, which, it added, had benefited from the Covid-19 pandemic.
Australian Vintage still reported a negative free cash flow of A$14m, though that was an improvement on A$19m a year earlier. The company booked an “underlying” free cash flow – after excluding “one-off investments” of A$16m – of A$2m. It said that compared to negative A$13m the previous year.
The group’s net debt was A$89m, slightly under its guidance of A$90m but up from A$75m a year earlier. It struck a new financing deal during the year.
Australian Vintage’s results included a A$27m impairment, a move it said would “ensure all legacy inventory is cleared” and move the company to “an in-balance inventory holding”.
It said: “Excess capital tied up in bulk wine inventory will be swiftly recycled into growing our innovative portfolio of brands and into repaying debt in FY27.”
The business “forecasts no further material inventory impairments”.
Australian Vintage booked a net loss after tax of A$64m, compared to a loss of A$6m 12 months earlier.
