Sharechat Logo

Delegat beats case sales goal, lifts profit guidance

Monday 17th July 2017

Text too small?

Delegat Group, New Zealand's largest listed winemaker, has lifted its operating profit guidance after a record year for case sales.

The Auckland-based winemaker, whose brands include Oyster Bay, is now projecting $38.5 million in net operating profit for the year ended 30 June 2017, from $37 million in 2016. The company has achieved record case sales of 2.656 million cases, it said, ahead of its targeted 9 percent increase in global case sales to 2.632 million cases in the 2017 financial year.

The company previously forecast full-year operating profit to be in line with 2016's record $37 million, based on then-current exchange rates, although it said at the time that forex volatility makes it difficult to forecast financial performance.

Delegat has previously said that the numbers reported under conventional financial reporting standards don't give enough insight into its performance as they don't allow for fair value movements for its vines and grapes. Today the company forecast $2.2 million in positive fair value adjustments for the year, which it expects to result in a reported profit after tax of $40.7 million, from $54 million in 2016.

In the first half, Delegat posted a 17 percent gain in operating profit, which excluded one-time movements in asset valuations, to $24.7 million on a 6 percent gain in operating revenue to $135.8 million. The bulk of Delegat's first-half sales came from its distribution in its New Zealand, Canada, Asia and Pacific segment. Revenue and profit from Europe dropped in the first half, while they rose in the United States. Its full results are due in August.

The shares rose 2.3 percent to $6.65, and have gained 12.1 percent this year.

(BusinessDesk)

  General Finance Advertising    

Comments from our readers

No comments yet

Add your comment:
Your name:
Your email:
Not displayed to the public
Comment:
Comments to Sharechat go through an approval process. Comments which are defamatory, abusive or in some way deemed inappropriate will not be approved. It is allowable to use some form of non-de-plume for your name, however we recommend real email addresses are used. Comments from free email addresses such as Gmail, Yahoo, Hotmail, etc may not be approved.

Related News:

NZ dollar heads for 1.2% weekly fall as greenback finds favour on rate hike view
Seeka annual profit falls 44% on lower kiwifruit volumes, impaired banana business
Pyne Gould first-half profit gains on Wilaci settlement
Steel & Tube may be interested in Fletcher assets if review prompts sales, CEO Malpass says
Northport upbeat on regional fund, helps lift Marsden Maritime 1H profit 5.4%
Countdown supermarkets 1H earnings fall 7.7% on rising cost of investment
Regional growth fund trickle today becomes avalanche in election year
Port of Tauranga's Cairns says export growth in 1H suggests 'economy in not too bad a shape'
NZ quarterly retail sales rise 1.7% in 4th-qtr, adding to upbeat electronic cards data
Kiwibank first-half profit sinks 32% as IT costs mount

IRG See IRG research reports