Delegat Group lowers profit outlook after US tariffs

Delegat Group is feeling the pressure of US tariffs. Photo / File

Wine producer and exporter Delegat Group has revised down its sales and operating profit guidance for the June year due to the imposition this month of trade tariffs by the United States.

The company now expects an operating net profit after tax of $47.0 million to $50.0m, down from its previous guidance of $55.0m to $60.0m.

Delegat Group said its performance for the nine months ended March 31 was in line with its forecast and market guidance.

“However, the introduction of a 10% tariff on imports imposed by the US administration, announced on April 3, has resulted in significant uncertainty expressed by our US distributors regarding forward shipments for Q4 [April – June 2025],“ it said.

“This uncertainty has led to a revised global case sales and profit guidance.”

The group now forecasts global case sales of 3,182,000 cases for the 2025 year, down 5% from previous guidance and 12% down on last year.

The company said its Oyster Bay brand continued to hold a leadership position in the US market and had a strong network of US distributors who were working closely with the group to navigate through the current uncertainty.

Delegat Group said it would continue to engage with its distributors to confirm forward trading plans.

Jamie Gray is an Auckland-based journalist, covering the financial markets, the primary sector and energy. He joined the Herald in 2011.