By Amy Looker

Australian Vintage Limited (AVL) has posted a year-on-year decline in net profit after tax for the six months ended December 31, which the company says is due to weaker sales in the UK and US markets.

AVL chief executive, Neil McGuigan, said that while net profit was down from $3.7 million to $3.3 million, the company had experienced growth of 12 per cent across its McGuigan, Nepenthe and Tempus Two labels. 

“The result has been impacted by the decline in the lower margin products to the UK and also the higher cost of the 2012 vintage,” McGuigan said.

“What is very pleasing is the continued growth of our key brands, with the McGuigan brand up 12 per cent, Nepenthe up 16 per cent and Tempus Two up 19 per cent. This shows that our focus on growing our key brands is working.” 

Also impacting AVL’s margins was the reduced sale of private label and bulk wine, with overall sales for the period to 31 December 2012 down six per cent.

However, AVL chairman, Ian Ferrier, said that the forecast was positive and he expected the company to bring its full year net profit back in line. 

"The continued growth in our core brands is very pleasing. We continue to win major awards with our wine which gives our customers the confidence that our wines are of highest quality,” he said. 

“We will continue to focus on reducing our cost base without impacting our wine quality. The 2013 vintage has started and there are signs that company vineyard yields are in line with expectations and above last year.”

AVL ended 2012 on a high note, once again picking up the prestigious title of International Winemaker of the Year at the International Wine and Spirits Competition in London for the third time, making it the only winery in the competition’s 43 year history to do so.

The Shout Team

The leading online news service for Australia's beer, wine, spirits and hospitality industries.

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