Sharechat Logo

Delegat lifts profit 15% in 2018, sees rising case sales out to 2021

Friday 24th August 2018

Text too small?

Delegat Group, New Zealand’s largest listed winemaker, lifted profit 15 percent in 2018, boosted by a revaluation of its biological assets, and confirmed its growth outlook for the next three years.

Net profit was a record $46.8 million for the year ended June 30, on an 8 percent lift in revenue to $272.1 million. In July, the company said unaudited operating profit for the year would be $44.9 million, a figure it confirmed today.

The bottom line was boosted by the fair value of the company's grapes increasing $5.5 million, while derivative financial instruments were written down by $2.9 million. The company booked a total revaluation gain of $1.9 million in the year, net of tax.

The winemaker, whose stable includes the Oyster Bay brand, sold 2.7 million cases globally in 2018, up 3 percent on a year earlier. It saw a 10 percent gain in case sales in its biggest market North America, to 1.25 million, offsetting a 7 percent drop from UK, Ireland and Europe to 687,000. Its case sales in New Zealand, Australia and Asia Pacific rose 2 percent to 799,000. 

Delegat reiterated its June forecast for 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. It forecasts 2019 operating profit to grow in line with global case sales growth, based on prevailing exchange rates. 

The board declared a 15 cent final dividend, payable Oct. 12 with a Sept. 28 record date.

The shares last traded at $9.99 and have gained 24 percent so far 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:

MARKET CLOSE: NZ shares dip as global trade jitters weigh on A2, F&P
NZ dollar set for weekly gain after Reserve Bank surprise
Burger Fuel exploring sale after review questions listing merits
New net migration data to remain rubbery for quite some time
NZX to push sales this year after reshaping business dents 2018 profit
Slowing new orders growth weighs on January PMI
New NZ dry dock a basis for new industry - KiwiRail
Wellington Drive beats 2H sales forecast, will meet earnings guidance
NZIQS decides more training is the answer to past president's misconduct
February 15th Morning Report

IRG See IRG research reports