Wine company says dollar affecting profits

By NZPA

Friday 20th April 2007

NZAX listed New Zealand Wine Company Ltd today repeated its January warning that the high New Zealand dollar will prevent it achieving its full-year forecast.

Chairman Mark Peters said that given the recent head of steam in the currency, financial results for the current financial year would suffer. "The board and management of NZWC are doing what they can to mitigate the overall effect.

"But if the dollar stays anywhere near current levels for any length of time then the company will struggle to match its 2006 result, let alone the record year it was projecting at the September 2006 AGM prior to the continuing upwards surge in the NZ dollar."

The NZAX-listed company, which counts Grove Mill, Sanctuary, Redcliffe and Frog Haven wine among its brands, reported an after tax surplus of $462,000 in the six months ended December 31.

NZWC had still managed to sell record volumes. Peters said the current harvest, which is well under way, with early indications quality was very good.

Despite the deteriorating profitability outlook, NZWC shares closed yesterday at a record $2.50. They have risen from $1.94 a year ago.

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