Delegat's confirms jump in harvest, IFRS harvest gains to lift FY net profit

Tuesday 16th July 2013

Delegat's Group, which completed the A$24.7 million acquisition of Australia's Barossa Valley Estate last month, said full-year net profit was "significantly higher" than last year's result following a strong harvest.

Net profit exceeded the $25.5 million in earned in the 12 months ended June 30, 2012, including IFRS fair value adjustments, particularly its net harvest provision. Delegat's harvested 28,884 tonnes of grapes in the 2013 season, meeting forecasts and up 42 percent from a year earlier, when its net harvest provision was a gain of $100,000.

Full-year operating profit is in line with guidance given in February of $27 million though it will include acquisition costs from the Barossa Valley purchase, the company said.

"The season has delivered exceptional quality fruit as a result of ideal weather conditions throughout the 2012/2013 growing season," chief executive Jim Delegat said.

The Auckland-based winemaker, whose stable includes the Oyster Bay brand, acquired a 5,000 tonne winery, a 41 hectare vineyard in the Barossa Valley, grape grower contracts and inventory and brands, by buying the Australian winemaker. The deal was funded through existing bank facilities.

The shares were unchanged at $4.05 and have climbed 37 percent this year.

(BusinessDesk)

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