Delegat Group, New Zealand's largest listed winemaker, said its operating net profit in the year to June lifted 17 per cent to a record $44.9 million, underpinned by record global case sales, lower cost of sales per case, higher yielding 2016 and 2017 vintages and lower financing costs.
The Auckland-based company said its unaudited operating net profit for the year to June 30 was achieved on global case sales of 2,736,000 for the year, up 3 per cent on the previous year. While the global case sales were slightly below the 5 per cent lift it had forecast, the operating net profit number was ahead of its prior forecast of $40.7m.
Operating profit includes the fair value adjustment in respect of grapes when packaged wine is sold rather than on harvest of the grapes, and the fair value adjustment on derivative instruments when the foreign exchange contracts and interest rate swaps are realised.
It said its International Financial Reporting Standards reported net profit is expected to be $45.8m, up 13 per cent on the year. It will provide audited full-year results in late August, it said.
The winemaker, whose stable includes the Oyster Bay brand, lowered its forecast for global case sales for the next three years slightly. It now expects global case sales to be 2.95 million in the current year, 3.17 million in the year to June 2020 and 3.38 million in the year to June 2021. Previously, it had expected 3.02 million in FY2019, 3.33 million in FY20 and 3.5 million in the year to June 2021.
The shares closed yesterday at $8.75 and have lifted 7.45 per cent so far this year.