MWE Announces FY22 Results

29 August 2022

MARLBOROUGH WINE ESTATES ANNOUNCES FY22 RESULTS for the year ended 30 June 2022 (FY22)

• Further solid progress implementing the branded wine growth
strategy providing increased revenue, margins and a return to
improved profitability despite considerable disruptions in key markets and supply chains.
• International distribution expansion, particularly into the US
and UK markets with exclusive distribution partners.
• Continued premiumisation focus, with 11% uplift in case price
realisation, and 10% growth in branded wine sales volume driven
by premium branded wines.
• MWE’s growth plans are underpinned by a strong financial
structure, along with the people, partners and business
foundation to continue to be successful in a challenging
business environment.

Award winning New Zealand wine company, Marlborough Wine Estates Group Limited (NZX: MWE), has reported its unaudited preliminary results for the year ending 30 June 2022 (FY22), with a return to improved profitability and a significant expansion for its premium branded wines through international market distributors despite considerable disruption in all key markets.

During FY22, the company signed new distribution agreements with distribution partners in the US, UK and Ireland, and continued to work with our existing distribution partners to develop Australasian and North American markets. MWE’s premium branded wines are now available through a wide range of premium outlets in those markets.

As widely reported in the media, there have been significant supply chain disruptions and cost increases, MWE is pleased with the progress of the distribution and premiumisation of its branded wines despite these conditions.

In the domestic market, MWE made significant progress in the expansion of distribution of its premium branded wines, recently securing expanded premium branded wine distribution with Countdown.

2022 harvested volumes were up approx. 12% on expectation (on a comparable basis +35% on the 2021 harvest) despite the COVID-19 pandemic restrictions which impacted the Marlborough region during the growing and harvest season. Sales of bulk grapes and some bulk wine from the 2022 harvest have been recorded in second half of FY22, with premium branded wine sales occurring in FY23.

CEO of Marlborough Wine Estate, Catherine Ma, said: “Although we faced many disruptions, our team maintained a focus on delivering the highest possible service levels to our customers, which has resulted in MWE advancing our premium branded wine growth strategy. Despite the reduced supply from the 2021 vintage, we expanded into New Zealand’s most important international wine markets, the US and UK. Our team has navigated through the uncertainty and disruptions of the pandemic and delivered improved profitability.”

MWE reported revenue of $7.96m, up 18% on the prior year. The branded wine sales volume increased by 10% from 38,000 to 42,000 cases and improved margins by continued focus on a premiumisation programme, with MWE delivering a 16% increase in branded wine revenue to $4.49m. Gross profit increase from $1.28m to $2.91m, representing a 127% YOY growth.

MWE converted some grape sales to the higher margin bulk wine sales for vintage 2022. Bulk wine sales revenue increased from $1.15m to $2.17m, while the grape sales decreased from $1.71m to $1.30m.

MWE reported an improved net profit after tax of $328,012 for the year, reflecting the expansion of MWE’s international markets, premiumisation of MWE’s products and improved efficiency of MWE’s operations.

Outlook

MWE has focussed growth plans for the next financial year include these initiatives:
• Further premiumisation of MWE’s branded wines;
• Expansion of MWE’s market share by working closely with its
distribution partners in all markets
• Expansion of the international distributor network
• MWE will continue to look for opportunities to grow by
acquisition, expanding its supply and distribution channels.

MWE is in a strong financial structure with a low debt position and believes it has the people, partners and business foundation to continue to be successful in a challenging business environment.

Accolades and Reviews

MWE has received a large number of accolades and top reviews during the FY22:
• OTU Marlborough Sauvignon Blanc 2021:
o New Zealand: NZ International Wine show, Gold
o Asia: SAKURA" Japan Women's Wine Awards 2022, Diamond Trophy,
Double Gold
o USA: James Suckling, 91 points
o Australia: Winestate Magazine 5 stars, 98 Points
• OTU Marlborough Pinot Rose, 2021
o New Zealand: NZ International Wine show, Gold
• OTU Limited Release Sauvignon Blanc 2021
o New Zealand: Bob Campbell, 95 points, Gold
o USA: Wine Spectator, 92 Points,
• OTU Limited Release Chardonnay 2021
o New Zealand: Bob Campbell, 95 points, Gold

ENDS

Authority for this announcement
Name of senior manager or director authorised to make this announcement: Catherine Ma
Contact phone number: 09 215 6650
Contact email address: [email protected]
Date of release: 29 August 2022

For media assistance and enquiries, please contact: Jackie Ellis on 027 246 2505 or email [email protected].

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Announcement PDF