New Zealand Wine Co's end results hurt by oversupply and strong dollar

A strong New Zealand dollar along with an oversupply of New Zealand wine has damaged the New Zealand Wine Co's end results.

On Friday, the winemaker stated that the wine volumes sales for the June 2011 year were low by 7% at 174,000 cases compared with the year before and the revenue was 14% low at just $1.3 million.

The company stated that the revenue and margins have been affected by the oversupply of New Zealand wine and elevated bulk wine sales by the industry, along with the mutation of dollar and strong competition.

NZWC Chairman Alton Jamieson said that the US dollar and the British pound have created difficulty.

He said, "We don't know what's going to happen with the New Zealand dollar. The strength of the dollar and where it's moved just over the last year, it's concerning for everyone".

According to the directors of the company, the revenues of the earnings would perk up during the 2012 financial year as the company will work towards the financially sustainable growth.

The company will release the annual report on September 1, notifying net loss and taxes of the June 2011 full year.