News

US comes into focus as Australian Vintage sees full-year sales leap - results

Most popular

Should Campari Group be renamed Aperol Group?

just-drinks speaks to A-B InBev CEO Carlos Brito

Why water has become more important than wine

Campari Group's Aperol Q3 bonanza - Comment

MORE
  • Full-year sales jump by 16.9% to AUD264.6m (US$189.8m)
  • Double-digit growth for priority brands McGuigan, Tempus Two and Nepenthe
  • UK/Europe sales up 25%; North America sales increase 31%

Australian Vintage has hailed a "significant improvement" in its full-year results, with the focus going forward set on the US.

Australian Vintage will focus more resources on the US going forward

Australian Vintage will focus more resources on the US going forward

The company, which only provided its top-line results on a reported basis, said late last week that its top-line in the 12 months to the end of June climbed by almost 17%. The performance was a marked improvement on fiscal-2017, when ForEx dragged sales down by 7%.

The group also highlighted a near doubling of its positive cash flow for the year to AUD26.7m, with chief executive Neil McGuigan pointing to a 14% sales increase for the company's three key brands: McGuigan, Tempus Two and Nepenthe.

In the UK, AV's largest market, the McGuigan brand saw sales rise by 18%, making it the third-largest wine brand by volume in the market. "Our decision to continue to focus on the UK market, post the Brexit vote, has been vindicated with UK/Europe sales up 25% and contribution up AUD5.4m," McGuigan said.

Meanwhile, branded sales into Asia rose 9% on the year, with business expected to grow thanks to a large number of new orders. Sales into North America were up 31%, thanks largely to positive trends in Canada, although sales into the US were slightly lower than expected. The company said it will "add additional resources" in the US in the near-future.

Closer to home, and the top-line performance in Australia came in flat, with New Zealand climbing by 7%.

The group's net profits leapt 79% to AUD7.7m.

Going forward, AV said it will continue to focus on it branded offerings and dial down its presence in the low- and no-margin segments. "Australian Vintage has transformed over the last 11 years from a bulk wine company to a quality and well-respected branded wine business," the company said. "This global transformation will continue as we push into the Asian and US markets and grow our existing established markets."

"I've never seen anything before that has affected us as much as Brexit" - Click here for just-drinks' exclusive interview with Neil McGuigan from 2017


Sectors: Company results, Wine

Related Content

Australian Vintage sells stake to Vintage China Fund as Brexit prompts export review

Australian Vintage sells stake to Vintage China Fund as Brexit prompts export review...

Molson Coors Full-Year 2017 - results data

Molson Coors Full-Year 2017 - results data...

"I've never seen anything before that has affected us as much as Brexit" - Interview, Australian Vin...

"In the US, we don't sell a litre. Come on, have a go!" - Interview, Australian Vintage CEO Neil McG...

Oops! This article is copy protected.

Why can’t I copy the text on this page?

The ability to copy articles is specially reserved for people who are part of a group membership.

How do I become a group member?

To find out how you and your team can copy and share articles and save money as part of a group membership call Sean Clinton on
+44 (0)1527 573 736 or complete this form..



Forgot your password?