Australian Vintage Ltd · ASX:AVG
Australian Vintage — H1 2025 Earnings Presentation
24 slides from Australian Vintage's earnings presentation, Feb 21, 2025
Slide 1: FY 2025 Half Year Results
FY 2025 HALF YEAR RESULTS FEBRUARY 2025 Presenters: Craig Garvin, Chief Executive Officer Adam Rigano, Chief Financial Officer 1
Slide 2: Disclaimer
Disclaimer The presentation has been prepared by Australian Vintage Limited (ACN 052 179 932) (“AVG”) (including its subsidiaries, affiliates and associated companies) and provides general background information about AVG’s activities as at the date of this presentation. The information does not pur
Slide 3: Australian Vintage Overview
AUSTRALIAN VINTAGE OVERVIEW 3
Slide 4: Australian Vintage is a world-class consumer orientated business
Australian Vintage (ASX: AVG) is a world-class consumer orientated business Champion in consumer-led wine innovation with 2/3rd sales export focused Global leaders in dynamic no-and-low alcohol wine segment Trusted relationships with growers, suppliers and customers Industry benchmark for ESG creden
Slide 5: AVG is focussed on three key areas to drive shareholder value
AVG is focussed on three key areas to drive shareholder value Focus areas and enablers for shareholder returns 1 Cash Positive 2 Growth Through Brands and Innovation 3 Organised to Win 5
Slide 6: Strategic plan continues to position AVG to succeed
Strategic plan continues to position AVG to succeed Consumers and Brands Markets and Customers People ESG Return on Assets 6
Slide 7: Cash Positive
CASH POSITIVE 7
Slide 8: AVG is on track to execute the strategic plan and targeted financials
1 AVG is on track to execute the strategic plan and targeted financials FY25 – Year 1 FY 26 – Year 2 FY 27 – Year 3 Drive growth and optimise cost base Drive growth and optimise cost base Accelerate Growth Board renewal Accelerate topline growth Accelerate topline growth • China and Rest of Asia • U
Slide 9: Optimising cost base and accelerating innovation to drive cash generation
1 AVG focused on optimising cost base and accelerating market leading innovation to deliver the strategic plan & drive cash generation Significant YOY improvement in cash generation which is the Disciplined cost control and operational efficiencies best result in four years delivering 80%+ improveme
Slide 10: Financial Snapshot – 1H 2025 vs Prior Year
1 Financial Snapshot – 1H 2025 vs Prior Year • Revenue with no margin not being pursued Profit & Loss 1H25 $m Movement $m change • P&L performance in H1 negatively impacted as we focus on cash Underlying Revenue 130 -$6 flow in FY25 to rebalance as planned by FY27 Underlying EBITDAS 13 -$3 • Revenue
Slide 11: Future cash generation focused across entire supply chain
1 Future cash generation focused across entire supply chain through cost-out & top-line growth initiatives Innovation & Market Grape Sourcing Asset utilisation Supply chain expansion Targeting $6-10m reduction Active discussions remain Targeting $2-3m reduction Top line growth remains key via improv
Slide 12: Growth Through Brands and Innovation
GROWTH THROUGH BRANDS AND INNOVATION 12
Slide 13: Groundbreaking innovation launching globally in 2025
2 Groundbreaking innovation launching globally in 2025 • Poco Vino will be a game changer in reimagining how people shop & share wine o Recruiting Millennials and re engaging lapsed wine drinkers with a quality & convenient format o Targeting mid-week wine occasions • Introduced to overwhelming succ
Slide 14: Innovation & company agility is delivering profitable growth in global markets
2 Innovation & company agility is delivering profitable growth in global markets Leader in consumer led wine innovation • Maintaining market share in all key geographies • New global innovation launched in H1 with Lemsecco spritz where demand exceeding supply • McGuigan growing +20% YOY in the UK an
Slide 15: Strategically investing in the portfolio mix to boost growth
2 Strategically investing in the portfolio mix to boost growth and strengthen market leadership in the second half of FY2025 Investing in Step change Strategic partnership Core Brands consumer led innovation opportunities • Investment in brands and geographies • Consumer led disruptive innovation to
Slide 16: Leveraging winemaking capability and partnerships to win in Asia
2 Leveraging winemaking capability and partnerships to win in Asia • Relaunch Barossa Valley Wine Company to lead China and rest of Asia expansion plans • B-Series wines showcasing the best of the Barossa • The range is set to launch in China in FY25 and will unlock new channels and geographies • Le
Slide 17: Organising to Win
ORGANISING TO WIN 17
Slide 18: AVG is re-organising to deliver growth, cost-out and consolidation
3 AVG is re-organising to ensure senior/dedicated resource focused on delivering major growth, cost-out and industry consolidation initiatives at no added cost Global brands and innovation Growth in key markets Global cost-out and industry consolidation Headcount neutral whilst reducing reliance on
Slide 19: New Board brings extensive turnaround experience
3 New Board brings extensive turnaround experience to drive future value for AVG shareholders James Williamson Margaret Zabel Michael Byrne Elaine Teh Interim Chair Non-Executive Director Non-Executive Director Non-Executive Director • Interim Chairman of the Board of • Chair of the People, • Chair
Slide 20: Experienced and stable executive team
3 Experienced and stable executive team delivering results supported by a highly engaged and agile global workforce underpinned by dynamic values driven culture t Craig Garvin Jeff Howlett Julian Dyer Adam Rigano Tom Dusseldorp Chief Executive Officer Chief Operating Officer Chief Operating Officer
Slide 21: Summary
SUMMARY 21
Slide 22: FY2025 First Half Highlights
FY2025 First Half Highlights Focus on delivering free cash flow and shareholder value • Cost out programs, innovation and market expansion driving the lowest normalised cash outflow in 4 years, providing confidence in delivering full year free cash neutrality • Re-organised leadership team to win •
Slide 23: Outlook
Outlook Positive H2 performance expected driving free cash flow neutrality: • Growth in the UK • Double-digit growth including emerging markets China, rest of Asia and North America • Integrate and drive consolidation opportunities • Ongoing reduction in cost base through supply chain negotiations a
Slide 24: Definitions
Definitions • Revenue = Gross sales less rebates (also known as Net Revenue) • Margin = Revenue less cost of goods sold • EBITDAS = Earnings before interest, tax, depreciation, amortisation and SGARA (Self generating and regenerating assets) • EBITS = Earnings before interest, tax and SGARA (Self ge