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Delegat’s lifts profit, selling more wine while keeping expenses in check

Delegat's Group lifted first-half profit by 31 percent after increasing sales of wine in North America and Europe and keeping expenses in check.

Profit rose to $19.3 million, or 19.04 cents a share, in the six months ended December 31, from $14.7 million, or 14.45 cents, a year earlier, the Auckland-based company says in a statement. Revenue climbed 1 percent to $129.1 million.

The company lifted total case sales by 7 percent to 1.09 million in the first half, with the strongest growth in North America, where sales jumped 30 percent to 309,000. Sales in the UK, Ireland and Europe climbed 2 percent to 403,000, while in Australia, New Zealand and the Asia Pacific they fell 3 percent to 378,000.

The case price realisation fell 3 percent to $113.2, which the company said reflected adverse foreign exchange movements. The company held its operating gross margin at 59 percent.

The company is on target to achieve full-year operating profit of $27 million.

"The directors continue to see the global economic headwinds as a challenge but have confidence in the resilience of the group's business model and its ability to deliver sustainable earnings into the future," chairman Robert Wilton says in the statement.

The shares rose 1.2 percent to $3.35, matching the high reached on February 19, and have gained 43 percent in the past 12 months. The company is not paying an interim dividend.

(BusinessDesk)