Delegat's says 2014 harvest supports sales growth projections

Jim Delegat
Delegat's Group 12-month price history (NZX.com)

Delegat's Group [NZX: DGL], the winemaker which last year bought Australia's Barossa Valley Estate, said its just completed 2014 harvest will allow it to achieve its forecast future sales growth.

The Auckland-based winemaker expects to increase wine sale volumes by 2 percent to 1.985 million cases in the year ending June 30, accelerating to an 8.8 percent pace in 2015 and 8.9 percent in 2016, according to projections detailed in its 2013 annual report. The 2014 harvest amounted to 35,127 tonnes, as its New Zealand vintage increased 18 percent to 34,123 tonnes. Its Australian harvest, the first vintage since acquisition of Barossa in June last year, amounted to 1,004 tonnes, the company said today.

"The 2014 vintage has delivered excellent quality in all regions," managing director Graeme Lord said. "The group has appropriate inventories to achieve future sales growth in line with guidance provided in the 2013 annual report."

Delegat's is embarking on a plan to boost global sales to 3.07 million cases of wine of the next six years, establishing its Oyster Bay and Barossa Valley Estate varieties as super-premium brands, as it targets the North American market. To support that growth, Delegat’s plans to spend $132 million in capital expenditure over three years, including the construction of a 10,000 tonne capacity winery in Hawke’s Bay and expanding its Marlborough winery and vineyard development. It expects to fund the investment by retaining earnings and using debt.

The company's shares last traded at $4 and have increased 6.7 percent so far this year.

(BusinessDesk)


Got a question about this story? Leave it in Comments & Questions below.

This article is tagged with the following keywords. Find out more about MyNBR Tags

NZ Market Snapshot

Forex

Sym Price Change
USD 0.6620 -0.0090 -1.34%
AUD 0.9351 -0.0073 -0.77%
EUR 0.5888 -0.0047 -0.79%
GBP 0.4571 -0.0067 -1.44%
HKD 5.1564 -0.0707 -1.35%
JPY 74.6900 -0.8090 -1.07%

Commods

Commodity Price Change Time
Gold Index 1247.8 51.900 2016-02-11T00:
Oil Brent 30.8 -1.490 2016-02-11T00:
Oil Nymex 26.1 -1.400 2016-02-11T00:
Silver Index 15.8 0.510 2016-02-11T00:

Indices

Symbol Open High Last %
NZX 50 5987.0 5987.0 5987.0 -0.89%
NASDAQ 4307.3 4316.5 4266.8 0.65%
DAX 8854.4 8959.9 8752.9 1.69%
DJI 15691.6 15844.1 15660.2 1.16%
FTSE 5537.0 5672.7 5537.0 2.42%
HKSE 18278.8 18482.3 18545.8 -1.22%
NI225 15426.3 15437.2 15713.4 -4.84%