Wine firm earnings up $2.3 million in a year

Bill and Carol Foley of Foley Family Wines. Photo / NZME.

Foley Family Wines, which is controlled by American billionaire Bill Foley, said full-year operating earnings more than doubled on increased sales of bottled wine in Australia and New Zealand, and a "modest" profit from a growing pool of bulk wine.

Operating earnings before revaluations and tax rose to $3.5 million in the 12 months ended June 30, from $1.2 million a year earlier, the Blenheim-based company said.

Sales jumped 20 per cent to $37.2 million, outpacing a 12 per cent gain in expenses, excluding interest, to $32 million.

Net profit dropped 62 per cent to $1.2 million, on valuation adjustments to financial assets and harvested grapes.

The winemaker, which has vineyards in Marlborough and Martinborough and links to wine distributor Eurovintage, lifted total sales of bottled wine by 4 per cent to 396,000 cases last year, for a net realisation that rose 4.4 per cent to $71 a case.

However, sales of bulk wine also soared as a result of the record 2014 vintage, which it said was "challenging" for the whole industry, and resulted in a price for bulk wine falling below $3 a litre. In total, it sold the equivalent of 91,557 cases as bulk wine this year, up from 55,000 cases a year earlier.

"We were pleased that all bulk wine sold was at a profit, albeit a modest one," the company said.

The company's shares, which are listed on the NZAX, closed unchanged yesterday at $1.40.

The numbers

• $37.2 million sales, up 20%.
• $1.2 million net profit, down 62%.
• $3.5 million operating earnings, up from $1.2 million.