Delegat's yesterday reiterated its earlier financial guidance, in expecting full-year case sales to hit more than 2.2 million and that after-tax profit for the year would gain 9% and come in at $34 million.
However, its after-tax profit from the previous half-year result year, $17.8 million, plunged to $9.8 million, which included fair value adjustments of $3.1 million for its vines, $7.5 million for its grapes and $4.3 million for derivative instruments.
Investors appear to have set aside any concerns over the profit dip. The shares gained 21%, or 80c, to climb to $4.60 after the announcement. The year high was $5 last September.
Brokers at Craigs Investment partners and Forsyth Barr described Delegat's six-month result as ''solid''.
Sales revenue was up 3.6% to $125.6 million, and the company booked a record operating profit, up 2%, to $20.5 million.
Forsyth Barr broker Andrew Rooney said it was ''a solid interim operating result'' and slightly above expectations. The cost of sales improvements from development and processing efficiencies continued to show through.
''While currency headwinds weighed on the total case price realisation, that was offset largely by pricing and product mix improvements,'' he said.
Delegat's net debt had climbed to $180 million and working capital was up $38 million on a year ago.
Mr Rooney said there had been investment across the business for continued growth, as well as into working capital to drive sales continues. Net debt and inventory levels climbing as the growth outlook continued.
Craigs Investment Partners broker Peter McIntyre said it was a ''solid result'', given all the moving parts involved, including geographical sales, foreign exchange and reinvestment.
''Overall, it's a good pass mark, especially given foreign exchange was working against them.''
Mr McIntyre said while net debt had climbed 17%, from $154 million a year ago to $179.4 million, the increase was largely $35 million investment in additional plant and property, reflecting Delegat's expectations of growth.
Global sales
Delegat's global sales for the six months to December
• Total case sales of 1,129,000 driven by US growth
• US case sales continue to climb, up from 348,000 to 425,000
• UK sales down for a third time to 327,000, last year 348,000 and 403,000 in 2013
• Aust/NZ/Asia/Pacific sales flat at 377,000, no growth since 2012
- Source: Delegat's
