Delegat's lifts first-half profit, selling more wine while keeping expenses in check

Tuesday 26th February 2013

Delegat's Group lifted first-half profit by 31 percent after increasing sales of wine in North America and Europe and keeping expenses in check.

Profit rose to $19.3 million, or 19.04 cents a share, in the six months ended Dec. 31, from $14.7 million, or 14.45 cents, a year earlier, the Auckland-based company said in a statement. Revenue climbed 1 percent to $129.1 million.

The company lifted total case sales by 7 percent to 1.09 million in the first half, with the strongest growth in North America, where sales jumped 30 percent to 309,000. Sales in the UK, Ireland and Europe climbed 2 percent to 403,000 while sales in Australia, New Zealand and the Asia Pacific fell 3 percent to 378,000.

The case price realisation fell 3 percent to $113.2, which the company said reflected adverse foreign exchange movements. The company held its operating gross margin at 59 percent.

The company is on target to achieve full-year operating profit of $27 million.

"The directors continue to see the global economic headwinds as a challenge but have confidence in the resilience of the group's business model and its ability to deliver sustainable earnings into the future," chairman Robert Wilton said in the statement.

The shares rose 1.2 percent to $3.35, matching the high reached on Feb. 19, and have gained 43 percent in the past 12 months. The company isn't paying an interim dividend.

BusinessDesk.co.nz

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