Australian Vintage Ltd · ASX:AVG
Australian Vintage — H1 FY2015 Earnings Presentation
15 slides from Australian Vintage's earnings presentation, Feb 17, 2015
Slide 1: December 2014 Half Year Results
For personal use only DECEMBER 2014 HALF YEAR RESULTS 17th February 2015
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 Key Points Market Conditions Australian Vintage Limited – Business and Results Summary Outlook 3
Slide 4: Top Line Result
For personal use only TOP LINE RESULT
Slide 5: Top Line Results
Top Line Results For personal use only Earnings • Net profit after tax of $4.4 million compared to $4.0 million prior year • Cash flow from operating activities $8.4 million. An improvement of $7.8 million • Revenue increased by 16% to $121.7 million due to significant improvement in UK sales. Gross
Slide 6: Top Line Results (cont.)
Top Line Results (cont.) Sales For personal use only • Total revenue up 16% to $121.7 million due mainly to increased bottled wine sales to UK/Europe • Australasia / North America packaged sales up 12% to $51.4 million with bottled sales up 6% and low margin cask up 26% • Total branded business cont
Slide 7: Key Points
Key Points Total revenue increased by $16.9 million to $121.7 million with the UK/Europe sales up For personal use only by $9.2 million and Australasia/North America up $5.5 million. Gross margin percentage declined due to the higher cost of the 2014 vintage and some large non recurring bulk wine sa
Slide 8: Market Conditions
For personal use only MARKET CONDITIONS
Slide 9: Market Conditions
Market Conditions Global For personal use only In 2013, Spain produced a huge crop, up 44% to 4.6 billion litres (about 6 million tonnes) resulting in deflationary impact on bulk wine prices. The effects are visible in global wine prices where only two major wine producing countries recorded an incr
Slide 10: Market Conditions (cont.)
Market Conditions (cont.) For personal use only Australian The 2014 vintage has been estimated at 1.7 million tonnes, a 7% decrease on last year’s crush (WFA Vintage Report October 2014). The 2014 crush is in line with the 7 year average. Total domestic sales increased by 14% to 609.5 million litres
Slide 11: Australian Vintage Limited – Business & Results Summary
Australian Vintage Limited – Business & Results Summary For personal use only 1. Branded Sales During the 6 month period to December 2014, total sales of the McGuigan Brand grew by 19%, Nepenthe Brand grew by 37% and Tempus Two grew by 8%. The sales of our three key brands increased by 19%. The thre
Slide 12: Australian Vintage Limited – Business & Results Summary (cont.)
Australian Vintage Limited – Business & Results Summary (cont.) For personal use only 3. UK / Europe Sales increased by $9.2 million to $55.2 million due to the increased sales of the McGuigan brand (up 28%). Contribution is down $0.9 million due to the higher cost of the 2014 vintage and some non r
Slide 13: December 2014 One Off Items
December 2014 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 $0.8 million provision for this contract has been reversed. Sale of Yaldara Winery In November 2014 sale of
Slide 14: Results Summary ($'000)
Results Summary ($’000) 6 months to Change 31/12/14 31/12/13 $’000 % For personal use only Australasia / North America Packaged 3,251 3,999 (748) (19) UK / Europe 1,905 2,792 (887) (32) Cellar Door 745 611 134 22 Australasia / North America bulk and processing (27) (337) 310 92 Vineyards 441 94 347
Slide 15: Outlook
Outlook For personal use only Australian Vintage Limited We remain confident that our strategy of growing the export business, increasing our branded sales and controlling our costs is the correct strategy. We continue to face short term challenges based on our high 2014 vintage cost and the ever in