Australian Vintage Ltd · ASX:AVG
Australian Vintage — H1 FY2014 Earnings Presentation
15 slides from Australian Vintage's earnings presentation, Feb 26, 2014
Slide 1: December 2013 Half Year Results
For personal use only DECEMBER 2013 HALF YEAR RESULTS 26th February 2014
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 First Half Highlights 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 $4.0 million compared to $3.3 million prior year • EBIT of $11.3 million compared to $11.9 million last year. Contribution from all segments up other than North America bulk and Vineyards 5
Slide 6: Top Line Results (cont.)
Top Line Results (cont.) Sales For personal use only • Total revenue down 4% to $104.8 million due mainly to reduced bulk wine sales to North America and UK/Europe • Australasia / North America packaged sales up 8% to $45.8 million with Australian bottled sales up 15%. Cask sales declined by 15% • T
Slide 7: First Half Highlights
First Half Highlights • The Australasia / North America segment contribution increased by 11% to For personal use only $4.0 million due to a significant increase in the sales of McGuigan branded product. McGuigan Black Label sales are up 29% in Australia • The Cellar Door segment improved contributi
Slide 8: Market Conditions
For personal use only MARKET CONDITIONS
Slide 9: Market Conditions
Market Conditions Global conditions remain challenging:- For personal use only 1. After a long period of buoyancy, total UK wine consumption declined by 7%. Government taxes have increased resulting in the UK and Ireland now having the highest wine duty rates in Europe (Rabobank Wine quarterly – QF
Slide 10: Market Conditions (cont.)
Market Conditions (cont.) For personal use only Australian Wine Industry 1. The 2013 vintage at 1.8 million tonnes was higher than expected and more than the industry can sell. (source: Australian Bureau of Statistics) 2. The extraction rates from the 2013 vintage were significantly lower than the p
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 2013, sales of the McGuigan brand grew by 23% in the domestic market partially offset by a 9% decline in the UK/Europe market. The McGuigan Brand continues to be well
Slide 12: Business & Results Summary (cont.)
Australian Vintage Limited – Business & Results Summary (cont.) For personal use only 3. UK / Europe This segment contributed $2.8 million compared to $2.7 million in the prior period. Total sales were down by $5.6 million to $46.0 million due to a significant decrease in lower margin bulk wine sale
Slide 13: Business & Results Summary (cont.) – Financial Position
Australian Vintage Limited – Business & Results Summary (cont.) For personal use only 5. Financial Position In October 2013 we finalised our $42 million capital raising. As advised, the net proceeds of $39.5 million was used to repay our debt down. The gearing (debt to equity) as at 31 December is 3
Slide 14: Results Summary ($'000)
Results Summary ($’000) 6 months to Change 31/12/13 31/12/12 $’000 % For personal use only Australasia / North America Packaged 3,998 3,593 405 11 UK / Europe 2,792 2,733 59 2 Cellar Door 611 350 261 75 Australasia / North America bulk and processing (337) 1,402 (1,739) (124) Vineyards 94 250 (156)
Slide 15: Outlook
Outlook Industry For personal use only Global industry conditions remain challenging but there are signs that in the long term global supply and demand are heading towards balance. Weakening AUD against GBP, USD and EURO are expected to improve margins. The weakening AUD will also create profitable