Delegat Group delivered record wine case sales of 1,267,000 for its six months trading to December, boosting after tax-profit to $21.5million.
Executive chairman Jim Delegat said revenue was up $20.3million on the corresponding period last year, due to global case sales being 12% higher and the favourable impact of foreign exchange rate changes.
"Delegat Group is well positioned to pursue its strategic goal to build a leading global super premium wine company and deliver sustainable earnings growth in the years ahead,'' he said in a statement yesterday.
Delegat shares, up more than 30% during the past year, were unchanged at $2.93 following the announcement yesterday.
Craigs Investment Partners broker Peter McIntyre said Delegat was on target to deliver annual case sales of 2.37 million.
He noted that while debt for the first half was up 25%, from $202million last June to $251.5million, that was consistent with Craig's predictions, with net debt expected to peak at about $300million by December.
Due to the timing of tax payments, cash flows from operations were down from the half by $3.6million to $15.1million.
Operating expenses rose by $8million, or 26% on last year, to $38.2million, which Mr McIntyre said were driven by a weaker New Zealand dollar and investment in offices and marketing.
Mr Delegat said the company was on target to achieve global case sales for the full year of 2.37 million, up 8% on a year ago, and to post a full-year operating after-tax profit of $36million, up 5% on last year.
Delegat's operating gross margin was up 15% on the corresponding period last year and impacted by a higher cost of goods per case, arising from the lower-yielding 2015 vintage.
Operating expenses at $38.2million were $8million higher than last year, due to the impact of a weaker New Zealand currency on the translation of off-shore expenditure, plus an increased investment in in-market sales offices and marketing, he said.
There was capital investment of $55.9million in growth assets including vineyard development and in the Hawkes Bay Winery - up from $34.3million a year ago.
For the sixth consecutive year, Oyster Bay received the "Hot Brand'' award from New York's Impact magazine, while the Barossa Valley Estate Cabernet Sauvignon 2014 won a gold medal at the Sydney International Wine Competition.
Delgat's North American market took 12% more cases, rising to 476,000.
Case sales rose 8% to 407,000 in Australia, New Zealand and the Pacific and 17% to 384,000 in the UK, Ireland and Europe, BusinessDesk report-ed.
Delegat Group
Results for the six months to December:
• Operating revenue up $20.3m to $128.6m.
• Operating after-tax profit up $1m to $21.5m.
• Operating earnings before interest and tax up $1.5m to $34.4m.
