Australian Vintage has promoted chief commercial officer Tom Dusseldorp to CEO.
Dusseldorp succeeds Craig Garvin, who “repositioned and stabilised the company after a difficult 2024” the publicly listed Australian Vintage said today (29 April).
The McGuigan Wines and Tempus Two owner re-appointed Garvin as chief executive last October just five months after ending his contract.
In May last year, Australian Vintage announced its board had fired Garvin as CEO “for engaging in conduct that, in its view, displayed a lack of judgement and was inconsistent with the values of the company and the high standards expected of its chief executive officer”.
Following his departure, non-executive director Peter Perrin stepped in as acting CEO while the search for a permanent successor was underway.
Perrin’s interim leadership concluded with his stepping down in August after a cancer diagnosis. Australian Vintage chairman James Williamson then stepped in to take the role.
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By GlobalDataWhen Garvin was re-appointed, Margaret Zabel, the chair of Australian Vintage’s people, remuneration and nomination committee, said: “Craig has demonstrated his ability to create an effective high-performing team, build a strong culture, and develop enduring relationships with customers and other stakeholders.
“He is the right person to take Australian Vintage forward and we are looking forward to working with him to create value for our shareholders to deliver great wine brands to our customers.”
Williamson said today: “The board appreciates the transformational leadership that Craig has brought to Australian Vintage for many years.
“He returned last year to support the board with a plan to stabilise the company during a difficult 2024 and ensure we had a first-class leadership team in place for the longer term. We are now better positioned as a result of his leadership, including having a clear succession plan in place.”
Williamson added: “We are fortunate to have an exceptional leadership team at Australian Vintage and it’s very pleasing to have Tom step up as chief executive.”
Dusseldorp joined Australian Vintage in 2022. His career includes roles at Pernod Ricard and Australian food and drinks group Noumi.
He said: “On the back of Craig’s leadership over recent months, we now have the opportunity to double down on our work to deliver sustainable, positive cash flow through targeted investments in innovation and brands for accelerated revenue growth.”
In Australian Vintage’s 2023/24 fiscal year, the company’s revenue rose 1% to A$261m ($175.7m). Underlying EBITS was up 24% at A$13m and underlying NPATS grew 29% to A$5m. However, the company saw posted a loss of A$93m.
In February, Australian Vintage reported its financial results for the first six months of its fiscal year, a period that ran to 31 December.
Revenue dropped 7.4% to A$126.1m, while gross margins were down 11% at A$35.4m.
However, the group said its first-half figures marked its “best cash performance in four years”, with normalised cash outflow improving by A$11m, compared to the same period in 2023, to A$8m.
The group saw declines in reported and underlying EBITDAS, with the former dropping 22.7% to A$11.2m and the latter decreasing 20% to A$13.2m.
Underlying EBITS dropped A$2m on the year prior to A$6m “reflecting focus cost out performance while navigating challenging industry-wide trading conditions”, the group said at the time.
Australian Vintage booked an A$473,000 net loss, compared to a net profit of A$2.8m in the corresponding period a year earlier.
Garvin said today: “This is the right time to pass the baton to the next generation of leadership at Australian Vintage. I came back to the company to support James and the board in setting a clear direction to restore shareholder value. I am very pleased to see our succession plan come to life with Tom Dusseldorp appointed as chief executive.”
