Australian Vintage Ltd · ASX:AVG
Australian Vintage — FY2015 Earnings Presentation
23 slides from Australian Vintage's earnings presentation, Aug 26, 2015
Slide 1: 2014/15 Full Year Results
For personal use only 2014/15 FULL YEAR RESULTS 26th August 2015 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: Top Line Result
Top Line Result For personal use only 1. Revenue up 7.5% to $230.9 million despite a $5.2 million decline in the Australasia/North America bulk and processing segment. 2. Net profit down 11% to $9.4 million due mainly to reduced contribution from the Australasia/North America bulk and processing seg
Slide 6: Continued Strong growth in Branded Sales
Continued Strong growth in Branded Sales For personal use only 1. Total revenue up 7.5% to $230.9 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 $99.0 million with
Slide 7: Highlights and Key Points
Highlights and Key Points For personal use only 1. The Australasia/North America segment contribution decreased by 10% to $7.2 million due to the increased cost of the 2014 vintage. 2. The UK/Europe segment contribution improved by 14% to $4.5 million. The contribution from bottled sales was up on l
Slide 8: Market Overview
For personal use only 8 MARKET OVERVIEW
Slide 9: Market Conditions
Market Conditions For personal use only Global conditions remain challenging:- 1. In the year ended June 2015 total Australian wine exports increased by 4% to 724 million litres valued at $1.9 billion (Australian Grape and Wine Authority – Wine Export Approval Report). 2. Whilst the Australian dolla
Slide 10: Australian Wine Industry
For personal use only AUSTRALIAN WINE INDUSTRY 10
Slide 11: Australian Wine Industry
Australian Wine Industry For personal use only 1. The 2015 Australian grape crush is 1.67 million tonnes. This figure is just below the 8 year average crush of 1.70 million tonnes. (July 2015 Vintage Report prepared by the Winemakers Federation of Australia). 2. In 2009, total bearing area in vines
Slide 12: Business and Results Summary
For personal use only BUSINESS AND RESULTS SUMMARY 12
Slide 13: Results Summary ($'000)
Australian Vintage Limited Results Summary ($’000) For personal use only 12 months to Change 30/06/15 30/06/14 $’000 % Australasia / North America Packaged 7,194 7,956 (762) (10) UK / Europe 4,457 3,903 554 14 Cellar Door 1,430 1,213 217 18 Australasia / North America bulk and processing 116 3,384 (
Slide 14: Australian Vintage Limited – Business & Results Summary
Australian Vintage Limited – Business & Results Summary For personal use only 1. Branded Sales The branded business continues to improve with the ongoing growth in our three key brands, McGuigan, Tempus Two and Nepenthe. Total sales of these three key brands increased by 43% over the last three year
Slide 15: Business & Results Summary (cont.)
Australian Vintage Limited – Business & Results Summary (cont.) For personal use only 3. UK / Europe This segment contributed $4.5 million compared to $3.9 million in the prior period. Total sales were up $10.4 million to $98.0 million due to the ongoing increase of our branded products. Whilst the
Slide 16: Business & Results Summary (cont.) – Financial Position
Australian Vintage Limited – Business & Results Summary (cont.) For personal use only 5. Financial Position Our cash flow from operating activities improved by $5.7 million due mainly to increased sales. Gearing ratio is at a comfortable 36% (39% as at 30 June 2014) and we have secure banking facili
Slide 17: Outlook
For personal use only 17 OUTLOOK
Slide 18: Outlook
Outlook For personal use only AVL continues to focus on the core strategies of quality, growing branded business, growing export and maintaining low cost position. We continue to face short term challenges due to our high cost from the 2014 vintage and the ongoing margin pressure. The 2016 result wi
Slide 19: Additional Information
For personal use only Additional Information 19
Slide 20: Branded Success
Branded Success Our branded success continued throughout FY14… For personal use only McGuigan Wines Cowra Wine Show 2015 - Trophy Best Single Vineyard Riesling; Trophy Best Single Vineyard Dry White Table Wine of Show; Trophy Best Riesling of Show. International Wine Challenge 2015 – 9 Gold; 5 S
Slide 21: Branded Success – more than just medals
Branded Success Our success is more than just medals… For personal use only McGuigan Wines is one of only two wine producers in the world to have been crowned International Winemaker of the Year three times by the prestigious International Wine & Spirits Competition in London, having achieved the
Slide 22: Portfolio Extensions
Portfolio Extensions Differentiation strategy drives brand McGuigan at $10+… For personal use only Bin Series Reserve The Brothers Classic Expressions 22
Slide 23: 2014/15 One Off Items
2014/15 One Off Items For personal use only Provision for Onerous Grower Contracts In December 2014 an onerous grower contract was renegotiated to normal market grape prices. The onerous $0.9 million provision for this contract has been reversed. Sale of Yaldara Winery In November 2014 the Yaldara w