Australian Vintage Limited (AVL) has reported an profit increase of $2.8m, up to $4.4m from $1.6m in the prior corresponding period.
The group said that the profit increase was driven by improved sales in all segments with Chief Executive Neil McGuigan backing the strategies adopted by the company.
“The significant improvement in the half-year result shows that our key strategies are correct. Every segment of our business showed an improvement in sales. What is really pleasing is that our half-year result exceeded our full 2017 financial year result.”
The UK remains AVL’s overseas market and operations across the UK and Europe increased by $3.7m to $4.7m, which the company said was due to price increases implemented in January 2017.
The Australasia/North America segment increased by 17 per cent, or $0.8m, which was driven by increased sales in the Tempus Two and Nepenthe brands.
The group’s three core brands of McGuigan, Tempus Two and Nepenthe all saw sales growth, with McGuigan up by seven per cent, Tempus Two up 44 per cent and Nepenthe up 35 per cent.
In looking ahead, the company said: “Australian Vintage continues to transform from a bulk wine company to a quality and well-respected branded wine business. This global transformation will continue as we push into the Asian and US markets. Our persistence on improving efficiency will mean that the company will invest $19m on capital projects this fiscal year.
“Based on the exchange rate remaining at around the current level and a normal 2018 vintage, we expect our 2018 result to be at least 60 per cent up on the 2017 result. This forecast comparison to the prior year takes into account the large 2017 vintage which resulted in a higher than expected SGARA in the second half of the 2017 financial year.
“At this early stage, we are expecting this year’s vintage to be about average which is slightly down on last year.”