Australian Vintage Ltd · ASX:AVG
Australian Vintage — FY2017 Earnings Presentation
22 slides from Australian Vintage's earnings presentation, Aug 30, 2017
Slide 1: June 2017 Results
Australian Vintage Ltd. June 2017 Results 30th August 2017
Slide 2: Disclaimer
Australian Vintage Ltd. June 2017 Results Disclaimer The presentation has been prepared by Australian Vintage Limited the industry, countries and markets in which AVG operate. They also (ACN 052 179 932) (“AVG”) (including its subsidiaries, affiliates and include general economic conditions, exchang
Slide 3: Key Points
Key Points Australian Wine Business Results & Summary Outlook Wine Show Results / Industry Key Brand Facts Key Points • Net profit after tax $4.3 million compared to after tax loss of $2.2 million prior year (after one off items). • Net profit after tax and before one off items $4.3 million compared
Slide 4: Key Points (cont.)
Key Points Australian Wine Business Results & Summary Outlook Wine Show Results / Industry Key Brand Facts Key Points (cont.) • AVL strategies remain unchanged: Grow export business Increase branded sales Focus on cost control • 1.0 cent fully franked dividend declared, payable 10 November 201
Slide 5: Australian Wine Industry
Key Points Australian Wine Business Results & Summary Outlook Wine Show Results / Industry Key Brand Facts Australian Wine Industry In the 12 months to June 2017 the value of Australian wine exports increased by 10% to $2.3 billion and volume increased by 7% to 778 million litres. The average value
Slide 6: Australian Wine Industry (cont.)
Key Points Australian Wine Business Results & Summary Outlook Wine Show Results / Industry Key Brand Facts Australian Wine Industry (cont.) The 2017 Vintage crush was 1.93 million tonnes, a 5% increase on last year’s crush (WFA National Vintage Report July 2017). This is the biggest crush in the las
Slide 7: Business Results & Summary
Key Points Australian Wine Business Results & Summary Outlook Wine Show Results / Industry Key Brand Facts Business Results & Summary 1. Branded Sales McGuigan sales volumes increased by 3% but due to unfavourable currency movements and our long term strategy to protect the image and price point of
Slide 8: Business Results & Summary (cont.)
Key Points Australian Wine Business Results & Summary Outlook Wine Show Results / Industry Key Brand Facts Business Results & Summary (cont.) 2. Australasia / North America Packaged Sales were slightly less than prior period at $106.0 million. Contribution was $6.3 million, slightly up on last year.
Slide 9: Business Results & Summary (cont.)
Key Points Australian Wine Business Results & Summary Outlook Wine Show Results / Industry Key Brand Facts Business Results & Summary (cont.) 3. UK / Europe The UK/Europe segment has been significantly impacted by the unfavourable exchange rate. The FX impact when compared to prior period is: Sales
Slide 10: Business Results & Summary (cont.)
Key Points Australian Wine Business Results & Summary Outlook Wine Show Results / Industry Key Brand Facts Business Results & Summary (cont.) 4. Other Segments Cellar Door sales declined by 4% to $7.8 million and contribution is down by $0.1 million due mainly to reduced sales at our Hunter Valley c
Slide 11: Business Results & Summary (cont.)
Key Points Australian Wine Business Results & Summary Outlook Wine Show Results / Industry Key Brand Facts Business Results & Summary (cont.) 6. Capital Expenditure Capital expenditure increased to $12.1 million as a result of a $8.0 million dollar investment in storage at our Buronga Hill Winery. T
Slide 12: Vines – Change of Accounting
Key Points Australian Wine Business Results & Summary Outlook Wine Show Results / Industry Key Brand Facts Vines – Change of Accounting New Accounting for Vines – Amendments to Australian Accounting Standards – Agriculture: Bearer Plants The amendments, applicable from 1 July 2016, required bearer p
Slide 13: Vines – Change of Accounting (cont.)
Key Points Australian Wine Business Results & Summary Outlook Wine Show Results / Industry Key Brand Facts Vines – Change of Accounting (cont.) Impact on Group Balance Sheet/Equity (cont.) The recording of grapes from leased vineyards at market value resulted in a decrease in inventory as at 1 July
Slide 14: Results Summary – Revenue ($'000)
Key Points Australian Wine Business Results & Summary Outlook Wine Show Results / Industry Key Brand Facts Results Summary – Revenue ($’000) 12 months to Change 30/06/17 30/06/16 $’000 % Australasia / North America packaged 106,005 106,672 (667) (1) UK / Europe 88,454 102,506 (14,052) (14) Cellar Do
Slide 15: Results Summary ($'000)
Key Points Australian Wine Business Results & Summary Outlook Wine Show Results / Industry Key Brand Facts Results Summary ($’000) 12 months to Change 30/06/17 30/06/16 $’000 % Australasia / North America Packaged 6,258 6,249 9 - UK / Europe 208 3,500 (3,292) (94) Cellar Door 1,456 1,568 (112) (7) A
Slide 16: Outlook
Key Points Australian Wine Business Results & Summary Outlook Wine Show Results / Industry Key Brand Facts Outlook The Company continues to focus on growing its three key Over the last 12 months the McGuigan brand has grown by brands, McGuigan, Tempus Two and Nepenthe and whilst 6% in the UK against
Slide 17: Outlook (cont.)
Key Points Australian Wine Business Results & Summary Outlook Wine Show Results / Industry Key Brand Facts Outlook (cont.) In the 6 month period to 30 June 2017, our sales into Asia have increased by 60% and contribution increased by 241% when compared to the same 6 months in the prior period. Whils
Slide 18: Outlook (cont.)
Key Points Australian Wine Business Results & Summary Outlook Wine Show Results / Industry Key Brand Facts Outlook (cont.) For the next 12 months the company will be undertaking major capital projects to further improve our efficiencies and our quality of wine. It is expected that our total capital
Slide 19: Wine Show Results / Key Brand Facts
Key Points Australian Wine Business Results & Summary Outlook Wine Show Results / Industry Key Brand Facts Wine Show Results / Key Brand Facts • In 2016 McGuigan received a total of 425 trophies and medals, including 27 Trophies; 13 Top Gold; 60 Gold; 6 Top Silver and 115 Silver medals. • McGuigan W
Slide 20: Wine Show Results / Key Brand Facts
Key Points Australian Wine Business Results & Summary Outlook Wine Show Results / Industry Key Brand Facts Wine Show Results / Key Brand Facts • McGuigan Wines are sold in over 40 countries world-wide. • McGuigan is the #13 Australian wine brand in AU. McGuigan Black Label Red is the #1 selling bott
Slide 21: Wine Show Results / Key Brand Facts
Key Points Australian Wine Business Results & Summary Outlook Wine Show Results / Industry Key Brand Facts Wine Show Results / Key Brand Facts • In 2016 Tempus Two received a total of 133 trophies and medals, including 6 Trophies; 2 Top Gold; 12 Gold; and 39 Silver medals. • Cairns Wine Show: Champi
Slide 22: Wine Show Results / Key Brand Facts
Key Points Australian Wine Business Results & Summary Outlook Wine Show Results / Industry Key Brand Facts Wine Show Results / Key Brand Facts • Sydney Royal Wine Show: Best Other White Varietal Trophy - Nepenthe Winemakers Selection Gruner Veltliner 2016. • Hong Kong IWSC: Best Chardonnay Trophy -