Delegat Group Limited (NZX: DGL) 2021 Full Year Results

Friday 27th August 2021

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PERFORMANCE HIGHLIGHTS

• Global Case Sales of 3,178,000.

• Record Operating NPAT of $65.5 million, up 8%.

• Record Operating EBITDA of $122.9 million, up 5%.

• Strong Cash from Operations of $74.7 million.

• Operating Return of Capital Employed of 13.8%.

GROUP OUTLOOK

The Group continues to operate in an environment of elevated uncertainty arising from the ongoing global pandemic and global supply chain disruption. Performance over the last year is testament to the strength and resilience of the Group’s business model in this environment. The Board is confident in the Group’s ability to prosper and drive sustainable sales and earnings growth over the long term. Accordingly, the Group continues to invest in its assets, brands and people in line with our strategic goal to build a leading global Super Premium wine company.

Delegat plans to grow sales by 25% to 3,976,000 cases over the next three years. The primary driver of planned growth is Oyster Bay sales in North America. With respect to the 2022 year, Delegat plans to grow sales by 8% to 3,419,000 cases and forecasts. Operating Net Profit after Tax to be in the range of $57 to $61 million. The forecast Operating Net Profit After Tax is lower than this year’s result due to the impact of the lower yielding 2021 vintage and higher grape prices resulting in an increased cost of goods per case, unfavourable exchange rate movements, higher freight costs and the recurrence of operating expenses suspended due to Covid-19 restrictions. The Group will continue to closely monitor and manage the potential impact of ongoing supply chain disruption including port congestion and shipping line capacity constraints, noting that these factors present some risk to the achievement of forecast case sales in 2022.

DIVIDENDS

The Directors consider that the underlying operational performance and continued strong cash flows justify an increase in dividends this year. Accordingly, the Directors are pleased to advise they have approved a fully imputed dividend payout of 20.0 cents per share. The dividend will be paid on 8 October 2021 to Shareholders on record at 24 September 2021.

Please see the links below for details

DGL - 2021 Full Year Results

DGL - 2021 Full Year Results Presentation

DGL - 2021 Final Dividend

Source: Delegat Group Limited

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