Australian Vintage Ltd · ASX:AVG
Australian Vintage — H1 FY2016 Earnings Presentation
25 slides from Australian Vintage's earnings presentation, Feb 24, 2016
Slide 1: December 2015 Half Year Results
For personal use only DECEMBER 2015 HALF YEAR RESULTS BRANDED SALES DRY PROFIT UP BY 80% 24th February 2016
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 and before one off items $3.6 million compared to $2.0 million prior year • Cash flow from operating activities $11.3 million compared to $8.4 million • Revenue increased by 7% to $129.8 million due to increased branded sales. Gr
Slide 6: Key Points
For personal use only KEY POINTS
Slide 7: Key Points
Key Points For personal use only Total revenue increased by $8.1 million to $129.8 million with the UK/Europe packaged sales up $7.7 million and Australasia/North America packaged up $6.0 million. Low margin UK/Europe bulk sales were down by $4.7 million. Gross profit percentage increased due to inc
Slide 8: Market Conditions
For personal use only MARKET CONDITIONS
Slide 9: Market Conditions: Australian Wine Industry
Market Conditions Australian Wine Industry For personal use only For 2015 the value of Australian wine exports increased by 14% to $2.1 billion and volume increased by 6% to 744 million litres. A series of free trade agreements and a depreciating currency were significant factors in this improved ex
Slide 10: Market Conditions: Australian Wine Industry (cont.)
Market Conditions Australian Wine Industry (cont.) For personal use only Wine sales have increased by 14% to 609.5 million litres. Sales of Australian wine was relatively flat at 455.1 million litres with the balance of 154.4 million litres representing imported wine. (Wine Sales in Australia – Quar
Slide 11: Business and Results Summary
For personal use only BUSINESS AND RESULTS SUMMARY
Slide 12: Australian Vintage Limited – Business & Results Summary
Australian Vintage Limited – Business & Results Summary For personal use only 1. Branded Sales During the six month period to December 2015, total sales of the McGuigan Brand grew 28%, Nepenthe Brand grew 22% and Tempus Two grew 5%. The sales of our three key brands increased by 26%. The three key b
Slide 13: Business & Results Summary (cont.)
Australian Vintage Limited – Business & Results Summary (cont.) For personal use only 3. UK / Europe Overall sales increased by 5% to $58.2 million due to the increased sales of the McGuigan brand (up 25%). Packaged sales increased by 16% to $56.7 million and low margin bulk sales decreased by 76% o
Slide 14: December 2015 One Off Items
December 2015 One Off Items For personal use only Vineyard Lease Termination In November 2015 Australian Vintage Limited served notice on Belvino Investments to terminate the lease of the Del Rios vineyard situated in Victoria. The effective date of termination was 31st December 2015. The lease was
Slide 15: Results Summary: Segment Revenue
Results Summary ($’000) Segment Revenue For personal use only 6 months to Change 31/12/15 31/12/14 $’000 % Australasia / North America Packaged 57,379 51,368 6,011 12 UK / Europe (see note) 58,196 55,185 3,011 5 Cellar Door 4,245 4,007 238 6 Australasia / North America bulk and processing 8,072 8,41
Slide 16: Results Summary: Segment Profit
Results Summary ($’000) Segment Profit 6 months to Change 31/12/15 31/12/14 $’000 % For personal use only Australasia / North America Packaged 3,747 3,251 496 15 UK / Europe 3,743 1,905 1,838 96 Cellar Door 827 745 82 11 Australasia / North America bulk and processing (314) (27) (287) (1,063) Vineya
Slide 17: Outlook
For personal use only OUTLOOK
Slide 18: Outlook
Outlook For personal use only 10 years ago, our total branded bottled sales for the six months to the end of December made up 39% of our sales. Today it is 82%. Branded sales into our export markets have increased by 157%. We have rationalised our production base resulting in a significant improveme
Slide 19: Outlook (cont.)
Outlook (cont.) For personal use only The Del Rios vineyard lease termination will result in grape payments reducing by approximately $5.5 to $6.0 million when compared to the average price paid for comparable grapes in 2015. In addition, we have a number of third party grape contracts that expire o
Slide 20: Outlook (cont.)
Outlook (cont.) For personal use only For the next six months we expect the Australian dollar to be higher against the GBP than the average for the first six months of this financial year. The GBP is the Company’s biggest foreign currency exposure. The Company has also experienced a slowing down in
Slide 21: Other Information
For personal use only OTHER INFORMATION
Slide 22: Wine Show Results | Key Brand Facts
WINE SHOW RESULTS | KEY BRAND FACTS For personal use only McGuigan Wines • 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 fea
Slide 23: Wine Show Results | Key Brand Facts (cont.)
WINE SHOW RESULTS | KEY BRAND FACTS (cont.) For personal use only McGuigan Wines (cont.) • In FY15 77% of total McGuigan volume was export. • McGuigan Black Label Red is the #1 selling bottled red wine in the domestic market. McGuigan Black Label Cabernet Merlot is the #5 selling bottle red wine in
Slide 24: Wine Show Results | Key Brand Facts (cont.)
WINE SHOW RESULTS | KEY BRAND FACTS (cont.) For personal use only Tempus Two • Best Single Vineyard Chardonnay; Ian Armstrong Trophy Best Chardonnay of Show - Cowra Wine Show. • James Halliday Wine Companion 2016 – Uno Shiraz 2013 - 95 points. • 5* Winery – James Halliday Australian Wine Companion 2
Slide 25: Building Brand Above Black Label: Securing the $12.99+ Price Point
BUILDING BRAND ABOVE BLACK LABEL: SECURING THE $12.99+ PRICE POINT IN AUSTRALIA For personal use only • The McGuigan range in Australia is dominated by Black Label – this remains the focus. However, in addition to continuing to drive Black Label, the brand is undergoing a premiumisation push to buil