Delegat's sees strong growth
Wine maker Delegat's is defying the global gloom by forecasting a 29 percent lift in profits for the current year to a record level of about $25 million.
Directors told shareholders at the annual meeting in Auckland today that while global markets may be uncertain, the super premium wine sector had shown not only resilience, but continued growth>
Managing director Jim Delegat said the company had experienced a very strong first half of the year. He said that for the six months to December 31, the after tax profit was likely to be about $15.5 million - compared with just $6.4 million for the same period a year ago.
"Given the excellent performance in the first half of the year, we are confident that the Group will deliver a full year result in line with the market consensus of $24.7 million. This represents a 29 percent increase on the 2008 full year performance," Delegat said.
Listed in 2006, Delegat's has produced a strong run of financial performances. Its share price has held up relatively well this year, as of yesterday's close down 20 percent for the year to date against a market average of about 35 percent.
The company produced a string of records in the financial year to June, including new high water marks of a $19.1 million after-tax profit and revenues of $165.3 million.
Delegat told shareholders the New Zealand wine industry was an international success story.
"New Zealand’s reputation and status as a world-class producer of sauvignon blanc, chardonnay, pinot noir and merlot has never been stronger and global consumers continue to demand New Zealand’s unique, elegant and flavourful wine styles. The Super Premium wine segment continues to show sustainable growth across all major global markets," he said.
"Delegat’s is a New Zealand wine industry success story. We believe that the valuable niche Delegat’s has established for its Oyster Bay brand in the global super premium wine market, supported by a proven and robust business strategy, positions the company well for the year ahead," Delegat said.