Delegat's half-year operating profit up 9%

Wednesday 23rd February 2011

Wine company Delegat's Group reported a 9% rise in half year operating net profit to $17.1 million, as the company improved its mix of price, country and product.

Sales revenue lifted 2% from a year earlier to $131.7 million for the six months to the end of December, while global case sales slipped 1 percent to $1.126 million.

"This has resulted in an increased case price realisation at $116.93, compared with $113.54 achieved in 2009, brought about by a positive change in price, country and product mix," Delegat's said today.

Reported net profit was up 14% to $15.9 million, taking into account the impact of fair value adjustments.

The company expects to achieve full year forecasted operating net profit within a consensus range of $20.5 million to $25.5 million.

Delegat's chairman Robert Wilton said the business environment was expected to remain challenging, with uncertain and slow recovery in the major markets where the group operated and sustained weakness in key export market currencies.

An industry supply imbalance remained, which was expected to result in grape prices staying near current levels for the next two to three years with further declines in vineyard asset prices likely, Wilton said.

Despite those challenges the group remained confident its sales performance for the full year would be ahead of forecast.

The performance demonstrated the success of the group's strategy to pursue value growth and growth markets.

NZPA

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