The New Zealand Wine Co. has posted a strong rise in profits for its full year.

The wine producer and marketer said today (2 August) that profits after tax for the 12-month period were up by 13% year-on-year, coming in at NZ$1.03m (US$635,700). NZ Wine said it was lowering its final dividend, however, from NZ$0.05 to a fully imputed NZ$0.04 per share.

The company has credited the increase to a larger grape harvest this year, higher demand in key export markets - in particular in the US - and favourable exchange rate forecasts.

"This is the basis upon which we go forward with confidence of continued improvement in the company results and improved returns to shareholders," said company chairman Mark Peters.

In June, the company was reportedly mulling moving is listing from the New Zealand alternative market (NZAX) to the main trading board, the NZX.