Delegat's full-year profit surges at least 58%, renews bank facilities

Monday 20th July 2009

Delegat’s Group Ltd., which makes Oyster Bay brand wines, said full-year profit climbed at least 58%, reflecting a pick-up in sales in the fourth quarter and adjustments to the fair value of currency hedge contracts.

Net profit was $30 million to $31 million in the 12 months ended June 30, up from $19.1 million a year earlier, the company said in a statement, citing unaudited figures. It will release its full results in late August.

The shares climbed 4.9% to $2.15 and are up almost 8% in the past 12 months. The results beat Delegat’s forecast in December for a 29% gain in annual profit, reflecting increased export sales.

“Favourable growing conditions throughout the summer growing season in the Hawke’s Bay and Marlborough regions delivered both quality and quantity and positions the company well for the continued growth of its Oyster Bay brand in the global Super Premium wine market,” managing director Jim Delegat said in the statement.

Earnings before interest, tax, depreciation and amortization were $64 million to $65 million.Delegat’s said it has concluded the 2009 harvest with 24,268 tonnes being harvested this year, 2% below the forecast yield and a decrease of 9% on the previous vintage.

The company renegotiated and renewed its existing facilities with Westpac Banking Corp., bringing the average maturity of the facilities to 2 years, it said.

Businesswire.co.nz

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