Australian Vintage Limited (AVL) has released its annual results and also announced that acting CEO, Peter Perrin is stepping down with immediate effect, following a recent diagnosis of a form of cancer.
Perrin, who has also served on the AVL Board for seven years, will also step down from the Board on 30 August.
In a statement AVL said: “The Board thanks him for his dedication and service and supports his need to focus on his health and treatment, wishing him well on his road to recovery.”
James Williamson will take on an interim Chair and interim CEO role with the CEO search underway.
Results-wise AVL said that the business has been able to improve its revenue and earnings despite the challenging industry conditions and trading environment.
The company said: “In all key markets inflation continued with competitive aggression deflating overall shelf price and increasing the cost of doing business. Double digit underlying earnings improvement, in line with guidance, has increased EBITDAS to $29m, EBITS to $13m and NPATS to $5m, 12 per cent, 25 per cent and 26 per cent respectively higher than the prior year.
“Innovation is key to revenue and margin growth and is a core strength of AVL. Premiumisation and innovation now represent 26 per cent of revenue and 35 per cent of margin, a significant increase from seven per cent and 10 per cent respectively in FY19, prior to the launch of McGuigan Zero.
“Innovation launched in FY24 includes Not Guilty, McGuigan Mid, Tempus One and McGuigan Gold. AVG are the global leaders in no-and-low with our McGuigan Zero product number 1 in the UK, Ireland, Australia and NZ. Globally, AVG has increased the revenue contribution from the no-and-low wine category by +20 per cent over the prior year.”
Overall AVL reported revenue growth of one per cent to $261m, and while underlying NPATS went up 26 per cent to $5m, statutory NPATS was $-86m, impacted by the change in strategy announced earlier this month reflecting non-cash post tax impairment of $89m for goodwill, inventory, ROU assets and tax losses.