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.
Bookmark and Share   Printable version
Related News

Powerhouse plans to sell down Invert Robotics stake for $1.3 mln
UPDATE: Economists unimpressed as GDP growth comes in as expected
Chorus plans underwrite for dividend reinvestment programme
NZ net migration up in August, immigration outpaces New Zealanders leaving
UPDATE: Fletcher HR boss Kate Daly jumps ship to BNZ; quarry workers strike
Restaurant Brands second-quarter sales jump 41% on overseas expansion
CBA sells CommInsure, Sovereign to AIA Group for A$3.8 billion
NZ's economy expands 0.8% in 2Q on export, domestic demand
September 21st Morning Report
Fletcher HR, comms boss Kate Daly jumps ship to BNZ; quarry workers strike

IRG See IRG research reports