23rd February 2024 Delegat / Wine
Rising costs and stalling sales presented tough first-half trading for winemaker Delegat, with net profit falling 18% although the period was not without wins.
Wine company Delegate Group is now expecting slower sales than last year, forecasting case sales of 3,614,000 cases for the 2024 year, down 1.7% on last year and 5.5% on previous guidance.
The Oyster Bay owner is ploughing hundred of millions of dollars into asset growth as it works towards a goal case sales of more than four million by 2026.
The winemaker reports strong growth in revenue and eyes further opportunities in the US, particularly for Oyster Bay.
Both companies increased global case sales in a strong first half, although they grew demand in different parts of the globe.
Comvita will likely write off its Hawke’s Bay honey facility, while Delegat and Terra Vitae gain access to their sites.
Brother and sister powerhouse Jim and Rose Delegat took home the coveted Visionary Leader award for their work establishing NZ as a premium wine exporter.
Delegat Group says it plans to invest $51.9m in 2023 to provide earnings growth in the years ahead.
Delegat Group has reported net profit of $63m for the 12 months to June 2022, up 2% from the previous year.
Delegat Group says its 2022 harvest has been of excellent quality and is up 20% on last season’s low yielding vintage.
Case sales across Australia, NZ and Asia Pacific jumped 14% but it wasn’t enough to make up for increased costs.
Former Ryman chief executive Gordon MacLeod has been appointed to Delegat Group.
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