Delegat's Group Ltd has reported a 57 percent increase in profit, which it sees as testimony to the power of a quality brand in difficult economic times.

The maker of Oyster Bay wine is paying an 8c a share fully imputed final dividend on October 23, up from 6c last year.

The $30.05 million profit in the year to June 30 was achieved on a 37 percent increase in revenue to $229.4m. The company predicted a profit between $30m and $31m in an update in July.

The group sold 1.738 million cases of wine, up 20 percent on last year.

The profit is a record as was last year's.

But the company is being cautious about the current year, saying volatile and unfavourable exchanges rates and an uncertain economic outlook made forecasting difficult.

"In our view the current challenging business environment is likely to prevail throughout 2010," chairman Robert Wilton said.

"Nevertheless, in the 2010 financial year the group expects to achieve continued sales growth and a profit result at least in line with the past year's record performance."

The performance this year reflected the strength, quality and integrity of the group's business model and demand for the Oyster Bay brand.

Cashflow from operating activities has increased from $8.3m in the 2008 year to $42.6m in the year under review.

Mr Wilton said there has been considerable media coverage of inventory and supply issues within the wine industry.

Managing director Jim Delegat said a number of New Zealand wine producers with less established sales and marketing infrastructure found that their supply from the record 2008 vintage exceeded demand for their products.

"This imbalance has resulted in increased levels of discounting by lesser known labels.

"The group has been largely unaffected by this activity to date with most of the impact being concentrated on private label and lower price wine producers," he said.

Consumers were shopping smarter and seeking out brands that delivered value relative to their price point.

The group continues to focus on making world-class super premium wine, marketed through strong and established brands.