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Delegat's profits steady despite forex crunch

Winemaker Delegat’s Group (DLG) have kept profits steady despite a strong dollar and a slump in European sales.

In six-monthly reports to December filed to the NZX, Delegat’s reported net profit after tax of $17.4 million, slightly up on the same period a year prior ($17.1 million).

The results came despite a strong dollar and a sales slump in Delegat’s largest market, the United Kingdom, Ireland and Europe.

Delegat's said the high dollar effectively cost $2.4 million compared to the same period a year earlier.

Sales revenue declined 10%, to $119 million from $131.7 million, after exports to Europe dropped 24%. The decline in Europe was partly offset by a 17% increase in the number of cases sold in North America.

Delegat's said the result left it on track to full-year profit targets of between $20.5 million and $24 million.

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