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Australian Vintage builds market share despite inflationary pressure

(Source: Bigstock)

Global wine company Australian Vintage Limited (AVG) says this year’s financial results will be “broadly in line” with market expectations despite inflationary pressures.

In a trading update, the business – whose brands include Nepenthe, Tempus Two and McGuigan – said adverse weather events and flooding have resulted in “lower-than-anticipated” vintage consumption, necessitating a $9 million fixed cost write-off.

Based on prior year comparisons, the company expects FY23 group revenue to be in the range of $255 million to $260 million while underlying EBITDAS might range between $26 million to $28 million.

“Despite growth in market share by AVG across its key geographies, the overall business environment however remains challenging, with inflationary pressures across core geographies in the UK and Australia persisting,” the company said in a statement.

To improve performance, various cost and debt reduction measures have been undertaken to improve revenue and profits in the upcoming financial year.

AVG CEO, Craig Gavin, said: “We remain confident in our strategic plan and are highly enthused by the performance of our innovative and premium brands.

“We are making proactive decisions today to both improve our financial performance as well as our ability to operate with agility to our strategic plan.”

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