Wine company, Foley Wines, has reported a significant decline in its half-year financial results, with operating earnings and operating cash flow taking a major hit.
The company's operating earnings plummeted by 77.5% to $1.26 million, while operating cash flow dropped by 57.7% to $2.95m.
Foley Wines' chief executive, Mark Turnbull, acknowledged the challenging six months, but also highlighted the broader industry's performance.
He attributed the decline to various factors, including the impact of global supply chain improvements, customers reducing stock levels, and the availability of bulk Sauvignon Blanc at low prices.
Despite the headwinds, Turnbull expressed confidence in the company's ability to sell its brands profitably, citing strong global partnerships and the acquisition of new routes to market.
Foley Wines also anticipates a lower yield from the upcoming 2024 harvest.
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