Oyster Bay first-half loss shrinks on cost control

Wednesday 24th February 2010

Grape grower Oyster Bay Marlborough Vineyards has reported a reduced first-half loss of $599,000 for the six months to December 31, down from $830,000 in the same period a year earlier.

The company habitually reports a loss in its first half as all revenues stemming from grape sales occur in the second half.

The outlook for the 2010 harvest is mixed, with directors reporting that "higher than average rainfall and cool spring temperatures have adversely impacted on early flowering chardonnay and pinot noir vines".

However, later-flowering sauvignon blanc vines have not been affected and are expected to deliver "in line with target yields". Prices for the current harvest remain under negotiation.

Total operating expenses for the half were $4.2 million, down from $4.5 million in the previous corresponding period, reflecting lower labour, contracting, vineyard input and corporate governance costs.

However, costs relating to a long-running dispute with grower Peter Yealands, who bought a 4.8% stake in Oyster Bay mid-decade, rose to $72,000 in the half, from $69,000 a year earlier.

The shares, which trade infrequently, last traded at $2.06 on Feb. 18, and have declined 22% in the past year.

Businesswire.co.nz

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