Delegat reports solid interim results, sees sales dip

Wine maker and exporter, Delegat, has reported solid interim results for the six months ending Dec 2023 (HY24), with an operating net profit after tax of $37.8 million.

Global case sales reached 1.92 million cases, a 2% decrease from the same period last year.

The company's operating revenue remained steady at $198.6m.

Delegat's operating EBITDA saw a slight increase of 1% to $74.8m.

However, its reported net profit after tax dropped by 18% to $33.4m.

Delegat attributed the lower replenishment orders to distributors and retailers resetting their inventory holdings.

The company highlighted the continued growth in Oyster Bay consumer sales and market share in the US, as well as New Zealand's position as the fastest growing country of origin in the premium US wine market.

It also mentioned ongoing investments in vineyard plantings and winery capacity expansion.

Delegat maintained its operating profit guidance for the full year 2024.