Australian Vintage Ltd · ASX:AVG
Australian Vintage — FY2014 Earnings Presentation
23 slides from Australian Vintage's earnings presentation, Aug 27, 2014
Slide 1: 2013/14 Full Year Results
For personal use only 2013/14 FULL YEAR RESULTS 27th August 2014 1
Slide 2: Disclaimer
Disclaimer For personal use only The information in this presentation is general advice, given in good faith and derived from sources believed to be accurate at this date but no warranty of accuracy or reliability is given and no responsibility arising in any other way including by reason of neglige
Slide 3: Index
Index For personal use only Top Line Result Market Overview Australian Wine Industry Australian Vintage Limited – Business and Results Summary Outlook Additional Information 3
Slide 4: Top Line Result
For personal use only 4 TOP LINE RESULT
Slide 5: Australian Vintage Grows Profit
Australian Vintage Grows Profit For personal use only 1. Net Profit increased by 49% to $10.5 million in difficult trading conditions. 2. Fully franked dividend at 2.2 cents per share. 3. A smaller vintage at 124,000 tonnes compared to 153,000 tonnes in 2013 resulting in an increase in our 2014 aver
Slide 6: Strong growth in Branded Sales
Strong growth in Branded Sales For personal use only 1. Total revenue up 3% to $214.8 million due mainly to the ongoing improvement in branded sales offset by reduced bulk wine sales and reduced contract processing. 2. Australasia/North America packaged sales up 11% to $88.9 million with Australian
Slide 7: Highlights and Key Points
Highlights and Key Points 1. The Australasia/North America segment contribution increased by 53% to $8.0 million For personal use only due to a significant increase in the sales of McGuigan branded product. McGuigan branded sales are up 25% in Australia. 2. The UK/Europe segment contribution improve
Slide 8: Highlights and Key Points (continued)
Highlights and Key Points (continued) For personal use only 7. Signed a long term, strategic China – wide distribution agreement with COFCO Wine & Spirits Co Ltd – a subsidiary of China’s largest food processing, manufacturing and trader, COFCO. 8. Signed contracts for the sale of the Yaldara Winery
Slide 9: Market Overview
For personal use only 9 MARKET OVERVIEW
Slide 10: Market Conditions
Market Conditions For personal use only Global conditions remain challenging:- 1. In the year ended June 2014 total Australian wine exports declined by 2% to 684 million litres valued at $1.8 billion (Australian Grape and Wine Authority – Wine Export Approval Report). 2. Recent duty increases in Ire
Slide 11: Australian Wine Industry
For personal use only AUSTRALIAN WINE INDUSTRY 11
Slide 12: Australian Wine Industry
Australian Wine Industry For personal use only 1. Vintage 2014 - The wine quality from dry land vineyards is outstanding and the quality from irrigated regions is equal to the outstanding 2013 vintage. 2. The Australian industry crush is expected to be less than the 1.83 million tonnes in 2013. Vint
Slide 13: Business and Results Summary
For personal use only BUSINESS AND RESULTS SUMMARY 13
Slide 14: Australian Vintage Limited Results Summary
Australian Vintage Limited Results Summary ($’000) For personal use only 12 months to Change 30/06/14 30/06/13 $’000 % Australasia / North America Packaged 7,956 5,214 2,742 53 UK / Europe 3,903 3,350 553 17 Cellar Door 1,213 708 505 71 Australasia / North America bulk and processing 3,384 8,000 (4,
Slide 15: Business & Results Summary
Australian Vintage Limited – Business & Results Summary For personal use only 1. Branded Sales During the 12 month period to June 2014, sales of the McGuigan brand grew by 25% in the domestic market and 4% in the UK/Europe market. The McGuigan Brand continues to be well received in the UK market and
Slide 16: Business & Results Summary (cont.)
Australian Vintage Limited – Business & Results Summary (cont.) For personal use only 3. UK / Europe This segment contributed $3.9 million compared to $3.4 million in the prior period. Total sales were down by $1.3 million to $87.6 million due to a significant decrease in lower margin bulk wine sale
Slide 17: Business & Results Summary (cont.) - Financial Position
Australian Vintage Limited – Business & Results Summary (cont.) For personal use only 5. Financial Position The gearing (debt to equity) as at 30 June is 39% compared to 59% 12 months ago. This is in line with our forecast gearing that was provided to the market at the time of the capital raising. O
Slide 18: Outlook
For personal use only 18 OUTLOOK
Slide 19: Outlook
Outlook Industry For personal use only Global industry conditions remain challenging particularly as a result of big vintages in Europe. Weakening AUD against GBP, USD and EURO are expected to improve margins. The weakening AUD could also create profitable opportunities at different price points. Co
Slide 20: Additional Information
For personal use only Additional Information 20
Slide 21: Branded Success
Branded Success Our branded success continued throughout FY14… For personal use only McGuigan Wines Runner up White Winemaker of the Year at the International Wine Challenge in London – 2014. Hunter Valley and Australian Semillon Trophy – Bin 9000 Semillon 2007 – International Wine Challenge 201
Slide 22: Branded Success
Branded Success Our success is more than just medals… For personal use only McGuigan Black Label Red is the # 1 ranked branded bottled red wine in the country. Australian Vintage Ltd was awarded ‘Most Successful Exhibitor’ at the 2014 Cowra Wine Show on the back of McGuigan winning three trophie
Slide 23: Portfolio Extensions
Portfolio Extensions New ranges drive premiumisation strategy… For personal use only Bin Series Reserve Expressions Founder’s Series The Philosophy 23