Australian Vintage Wine Profits Up Despite Slump
The sales of wine in casks and bulks have dropped, but according to a long-time wine company, there remains a high demand for quality wine, and this is is what has kept Australian Vintage’s earnings steady, despite the challenges.
Australian Vintage owns some of the widest selection of wine that range from McGuigan to Passion Pop. For the latest financial year, the company has earned a net profit of $7.07 million, slightly above its $7.06 million earnings from last year.
The company, however, revealed that there is a slump in its revenue of up to 8.5% due to the drop of sales in the UK and in Europe, as well as the lowered demands for wine in bulk in North America and even Australia. This drop would have severely affected Australian Vintage’s full year profit earnings, if not for the demand in high quality wines.
Australian Vintage has also taken into account the reduction of its leases for many of its vineyards.
Production for 2012, also reduced, due to the current economic conditions but profit and performance have been remarkable.
The company has a forecast of $2.4 million growth for the current financial year, and Australian Vintage chairman Ian Ferrier said,
“The improved trading conditions we are beginning to see are encouraging for Australian Vintage.”
“We have turned the corner away from the corrective action that needed to be taken in the past and we see positives as the industry cycle swings and supply and demand move further into balance.”
Shares for the company is up at 4.3% to close at 49 cents in the market this week.