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Record wine production of 2.65million cases has prompted producer Delegat Group to upgrade full-year after-tax profit guidance by almost 7% to $38.5million.
Delegat yesterday upgraded its unaudited forecast of operating profit after tax from $36million to $38.5 million for the year, scheduled for release in late August.
Forsyth Barr broker Damian Foster had forecast after-tax profit at $37million and said the main driver of the upgrade was cost control, with a solid vintage, up 10% on a year ago, helping spread the costs.
``There's no specific large one-off cost savings, just lower expenses across the board.''
However, while Mr Foster said there could be earnings upgrades of more than 4% to full year 2017, there was some currency risk to full year 2018-19 estimates.
Mr Foster said there was a challenging currency outlook, in particular from the pound sterling, which at present was ahead of expectations.
``In addition, some sales volume risk in the UK exists following price increases in that market. That may put pressure on Delegat's volume targets, currently at more than 7% to full year 2018,'' Mr Foster said.