Australian Vintage’s profits rise by 79%

Australian Vintage, owner of the McGuigan, Tempus Two and Nepenthe wine brands, has seen its profits rise by 79% in the year to 30 June 2018, with UK sales up by 18%.

Neil McGuigan is celebrating a 79% rise in profits at Australian Vintage

The company also reported record cash flow, up AU$12.7 million on last year to AU$26.7 million – the highest it has achieved for the last 12 years.

Revenue for the year increased by 17% ($38.2 million) due to the continued growth in branded products. Meanwhile, sales to New Zealand recovered from last year’s decline and were up this year by 7%.

“Our continued focus on our three core brands: McGuigan, Tempus Two and Nepenthe, has resulted in their continued growth, with sales increasing by 14% during the year.

“In the UK McGuigan sales grew by 18% and in that market McGuigan is the third largest global brand by volume,” said CEO of Australian Vintage, Neil McGuigan.

“Our decision to continue to focus on the UK market, post the Brexit vote, has been vindicated with UK/Europe sales up 25% and contribution up $5.4 million.

“A focus on sales mix and pricing has contributed to the improved performance in this market,” he added.

UK sales were buoyed by the launch of the McGuigan Black Label brand in supermarkets.

In the 12 months to 30 June 2018, wine sales in Asia increased by 9%.

“With a large number of orders in early July, we expect this segment of our business to continue to grow. We remain confident that we have the right strategy for sustainable long-term growth in Asia,” McGuigan said.

The North American market remains buoyant for Australian Vintage, with sales rising there by 31%, the lion’s share of which came from Canada.

“With the improved cash flow from operating activities we will continue investing in the company to improve efficiencies, secure our future grape supply at market prices or better, and improve our already high quality of wine,” McGuigan said.