Delegat reports 17% profit jump as global wine sales pass 2.7m cases
A three-year forecast of case sales shows a steady increase to nearly 3.4 million in 2021.
Investors in wine company Delegat Group will be popping more corks after a 33% rise in the share price over the past year and another record annual result.
The group has reported an unaudited operating after-tax profit of $44.9 million for the year to June 30. This is up 17% on the previous year of $38.5m.
The company says this was achieved on record global sales of 2,736,000 cases, up 3% on the previous year. A three-year forecast of case sales shows this will steadily increase to nearly 3.4 million in 2021. This is a compound growth of 7% a year and an 8% increase for 2019.
Delegat’s statement says the higher profit is also due to lower cost of sales per case, higher yielding 2016 and 2017 vintages and lower financing costs.
Delegat is forecasting positive fair value adjustments (under international reporting standards) for the year of $900,000, boosting net profit to $45m, due to the increased value of grapes when made into wine and derivative instruments.
The audited full year result will be posted in late August.
At today’s price of $8.65 a share, Delegat has a market capitalisation of $864.8m. It listed in 2006 and 90% of its revenue comes from exports under the Oyster Bay label. It also owns Barossa Valley Estate in South Australia.
NBR Rich Listers Jim and Rosemari Delegat own 66% of the company, founded by their parents in 1947.
Nevil Gibson
Mon, 16 Jul 2018
Mon, 16 Jul 2018
© All content copyright NBR. Do not reproduce in any form without permission, even if you have a paid subscription.
Delegat reports 17% profit jump as global wine sales pass 2.7m cases
75819