New Zealand Wine Company has posted a 7.2 per cent increase in first-half profit but the exporter says the high New Zealand dollar will prevent it from achieving its full-year forecast.
The NZAX-listed company, which counts Grove Mill, Sanctuary, Redcliffe and Frog Haven wine among its brands, reportedan after-tax surplus of $462,000 in the six months to December 31.
The result was achieved on a 6.9 per cent increase in revenue to $4.9 million. A fully imputed interim dividend of 3c a share was declared, unchanged from last year, and payable on April 2.
Chairman Mark Peters said the company was investing in building brands and the second half of the year would be better than the first.
But the final result would depend on the level of the dollar between now and June 30.
"The stubborn strength of the dollar has been well astray from bank forecasts of 56c against the US dollar used in June 2006 for our projection for 2007 of a net result of $1.6 million and this certainly will not be reached," Peters said.
But sales were meeting budgeted levels and that was positive for the full-year result.
"Once the currency does see lower levels the company is well placed to benefit accordingly."
All of the 2006 wines released to date have been well received in the market place.
The company is expecting a quality harvest for the 2007 vintage, despite the impact of mixed summer weather.
