Jim Delegat says his company is better placed than rivals to gain from a surge in global demand for wines. Photo / Greg Bowker
Wine company Delegat's says foreign exchange dealing and adjusting prices had helped it weather the high New Zealand dollar.
Delegat's chief executive Jim Delegat said companies need to accept the currency is higher than it traditionally had been and realign pricing.
"I think we've carved ourselves a niche
in the super premium category and in many ways that offers us some resiliency," said Delegat. "However currency is a little bit like the tide - the tide comes in and the tide goes out - and we have to be vigilant with our opportunities."
Delegat's yesterday reported net profits of $14.9 million - nearly triple last year's result of $5.2 million - in its first full year result since listing in April last year.
Operating profit was 106 per cent of last year at $43 million and revenue grew 56 per cent to $133.1 million.
It would pay a fully imputed dividend of 4.5 cents in October.
Delegat said the export-focused wine company - which hit record global sales of 1.2 million cases - could continue to double sales every three to four years by focussing on the Australian, North American and UK markets.
Delegat said: "We planted vineyards in anticipation of this global demand and today we are able to meet that demand. We are able to grow our business more quickly than our industry counterparts because we have supply."
Wines, including Oyster Bay, have developed into a significant global brand and has "must stock" status among sellers of New Zealand wines, he said.
Delegat's shares closed steady at $2.60.
CORKER
Year to June 3
Delegat's
Revenue
2007 - $133.1m
2006 - $85m
Ebitda
2007 - $43m
2006 - $20.9m
Net profit
2007 - $14.9m
2006 - $5.2m
Dividend
2007 - 4.5c
