Tuesday, May 21, 2024

Delegat raises a glass to record sales

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Oyster Bay meeting North American thirst for premium NZ wines.
The group is aiming to increase case sales by 4% in the current financial year.
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Listed leading wine company Delegat Group sold 9% more cases in the 2023 financial year to reach record sales of 3,676,000 cases, of which 97% were exported.

Operating net profit after tax (Npat) was $59.3 million, up 2% on the year before.

Reported Npat was $64.8m, up 3%, and revenue was up 15% to $376m.

The company will pay a fully imputed dividend of 20c a share on September 13. It did not pay an interim dividend back in February.

Chief executive Steve Carden said Delegat Group is aiming to increase case sales by 4% in the current financial year and increase operating profit to between $62m and $67m.

The biggest market is the United States and Canada, where 1.747 million cases were sold, followed by the United Kingdom, Ireland and Europe with 1.237 million cases.

In the premium US market the company’s No 1 brand, Oyster Bay, outperformed industry growth with four varietals: sauvignon blanc (up 16%), chardonnay (up 14%), pinot noir (up 8%) and pinot grigio (up 26%).

Adding in two other varietals, merlot and rosé, Oyster Bay is ranked No 1 NZ premium wine in 16 out of 28 categories – four or six wines in five export markets.

It is ranked No 2 or 3 in a further 11 categories.

Pinot grigio and rosé are not ranked in Ireland.

Chair Graeme Lord said the results are strong in an international market showing flat wine sales, global inflationary pressures and severe weather events in New Zealand.

“We are well positioned for substantial future sales growth and are confident our continued investment programme will create additional value for shareholders.”

The share price is around $8.36, having fallen 30% over the past year. Two years ago the share price was up at $14.

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