Australian Vintage Limited (AVL) has released its half-year results, which CEO Craig Garvin says show progress in the company’s plans to restore shareholder and position itself for future growth.
Garvin said the results show that AVL is an agile industry leader and that the business is focused on delivering profitable growth and strong cash flow control.
“Our first-half results reflect early progress in restoring shareholder value, balancing cost discipline with targeted investments for sustainable growth, with positive cash flow, reduced debt and accelerated brand growth as key measures,” he said.
“Since returning to the business in October, I have made it a priority to visit our key markets twice and meet with all key partners to ensure our commitment and connection at the highest level,” Garvin added.
“This is ensuring we are leveraging strategic partnerships to accelerate growth in key international markets, China and the rest of Asia represent a significant upside to our business in the short to medium term. The company has partnered with COFCO (China’s leading wine distributor), and Oceanus (a key distributor in Asia), with shipments to Asia expected to increase by double digits for the full year.
“We are also building the capability to deliver sustainable growth while removing costs. Organising to win requires a disciplined approach—positive cash flow and reduced debt must be tangible outcomes.
“To achieve this, we have appointed two proven leaders to key roles. Jeff Howlett, Chief Operating Officer is leading a significant cost-reduction and consolidation strategy. Tom Dusseldorp, Chief Commercial Officer, now oversees the global brand rollout and innovation strategy.
“With these experienced leaders reporting directly to me, we have a clear structure in place to optimise costs, strengthen cash flow, and accelerate high-margin global growth.
“This approach is already delivering improved performance, with continued gains expected in our full-year results and future years.”
Looking ahead Garvin said: “With strong innovation and strategic expansion, Australian Vintage is set to generate positive cash flow in the second half of FY25, thereby achieving free cash flow neutrality for the full financial year.
“I am extremely pleased with the alignment we have established between our newly appointed board and management. Our board is supporting our progress with professional expertise and strategic acumen to deliver improved results and market performance.
“As the industry continues to consolidate globally, we remain proactive in evaluating opportunities that drive long-term value. Our processing capabilities, wine expertise, and assets are world-class and a strategic advantage when paired with the right incremental volume.”