Global wine company Australian Vintage Limited (AVG) says profits increased 29 per cent during the December half and the business plans to grow its market share further in the new half.
For the six months to December 31, sales reached $137.1 million – flat with the prior period – with pillar brands contributing 77 per cent to total revenue.
Tax-paid profit achieved $12.9 million impacted by the sale and leaseback of commercial vineyards of Coldridge and Grande Junction while EBITDA grew 17 per cent to $28.3 million.
In its Australia and New Zealand segment, growth was driven by its premiumisation strategy across brands such as Nepenthe (up 21 per cent), Tempus Two (up 4 per cent) and Barossa Valley Wine Company (up 2 per cent) while the McGuigan brand declined by 25 per cent.
In the UK, the no-and-low category achieved 44 per cent of the market share with McGuigan Zero reigning as the number one alcohol-free still wine brand in the country.
McGuigan also grew 19 per cent in Ireland and 9 per cent in Canada. Asia segment growth was flat during this period.
AVG CEO Craig Garvin said the results are in line with expectations and the business will continue to invest in its portfolio growth and market share.
The company says softer trading conditions are expected to continue moving forward “driven by hyper-inflation, ongoing interest rate increases, aggressive Australian export behaviour arising from red wine surplus, and increased competition in the no-and-low segments in Australia.”
