KEY POINTS:
Listed wine company Delegat's Group has reported a 77 per cent rise in annual net profit to $19.1 million, citing a year of record sales performance and market share milestones.
The rise in profit for the year to the end of June from $10.8m the previous year was
made on a 23 per cent rise in total revenue to $165.3m.
Earnings before interest, taxes, depreciation and amortisation (ebitda) was up 46 per cent to $55.4m. A dividend of 6 cents per share is to be paid.
Managing director Jim Delegat said global sales of 1,449,000 cases were 17 per cent higher than the previous year.
The group had continued to maximise the potential of the valuable niche established for the Oyster Bay brand globally, he said.
Oyster Bay's brand footprint had continued to grow in its major export markets, holding the number one New Zealand wine category position in the important markets of Britain, Australia and Canada.
The sustained global growth in the super premium wine segment and the strength of the Oyster Bay brand has enabled the group to maximise price s and focus on delivering value and volume growth.
This country's reputation and status as a world-class producer of sauvignon blanc, chardonnay, pinot noir and merlot had never been stronger and global consumers continued to demand New Zealand's elegant and flavourful wine styles, Mr Delegat said.
In 2008 the New Zealand wine industry achieved record export sales of $800m, a 14 per cent increase.
Industry participants with leading brands, powerful established distribution networks, and an uncompromising focus on quality, were well placed to use the increase in supply from the 2008 vintage to meet growing global demand for super premium New Zealand wine.
Delegat's had increased export case sales - which represented 88 per cent of the group's total case sales - by 20 per cent for the year, compared to 17 per cent for the industry as a whole.
The company's growth in export market share was achieved beyond this country's principal offering of sauvignon blanc, with strong export growth in chardonnay, merlot and pinot noir.
During the year the group increased its in-market price realisation by 5 per cent to an average of $112 per case, a premium of 38 per cent against industry export earnings of $81 per case, Mr Delegat said.
In this country Delegat's had achieved strong retail sales volume and value growth with the Oyster Bay brand in a flat and fragmented market.
Delegat's shares closed at $2.23 yesterday, having ranged between $2.87 and $1.50 in the past year.
- NZPA
