US sales boost profit for Delegats
First-half net profit at listed winemaker Delegats has shot up 31 per cent to $19.3 million, partly thanks to sales growth in North America.
The company, which produces Oyster Bay-branded wine, said it was on track to make a net profit of $27m for the full year.
The 31 per cent profit jump includes the impact of fair value adjustments for assets.
Removing the impact of those adjustments - which took a $2.7m bite out of its profit in the six months to December 2011 - Delegats' net operating profit rose 10 per cent year-on-year to $19.2m. Operating earnings before interest, tax, depreciation and amortisation lifted eight per cent to $30.4m.
Delegats has increased profit in its developed markets and boosted sales volumes in maturing markets.
Global case sales for the six month period ending December 31 were 1.09 million cases, up 7 per cent year-on-year.
Case sales in North America - which includes the United States and Canada and is seen as a key growth market - rose 30 per cent to 309,000.
Case sales rose 2 per cent in Britain, Ireland and Europe, but slipped off 3 per cent in Australia, New Zealand and Asia Pacific.
Sales revenue weighed in at $123.4m, up 4 per cent year-on-year, being partly offset by currency movements which saw the case price realisation slip to $113.20, compared to $116.40 the prior year.
Delegats' directors said global economic headwinds would continue to be a challenge, but they had confidence in the group's business model and ability to deliver sustainable earnings.
"The drive to pursue those markets that deliver value and to achieve the forecast volumes and resulting profitability continues."
Delegats did not declare a dividend.
Its shares are priced at $3.31 on the NZX, up 38 per cent on this time last year.