By Annette Shailer
Cockatoo Ridge Wines recorded an unprecedented net profit of $4 million after tax since securing the first joint brand and distribution partnership with Australian Commercial Wines (ACW).
The 2008 half year figures include operating cash flows of $9.1 million and a debt reduction of $9.1 million.
The figures are a positive reflection of the successful integration of ACW into Cockatoo Ridge Wines’ business, resulting in a multi-channel wine company.
Cockatoo Ridge Chairman Ivan Limb said the partnership was working extremely well.
“Obviously we’re excited with such solid profit results, strong cash flow and debt reduction, we’re very happy,” he said.
The business predicts record profits in 2008 with a considerable crush planned for the company, significant bulk wine and juice supply contracts, and strong domestic and export wine sales.
“So far 2008 looks solid we seem to be on target and the early wines look fantastic,” Limb said.
Issues that may affect Cockatoo’s outlook include the higher Australian dollar impacting export growth, and lower vintages in 2007 and 2008 increasing grape prices.