Australian Vintage Group may have maintained revenue in a tough wine market in the last fiscal year, but impairments to clear unsold inventory and restructuring costs devastated the bottom line.
Revenue rose by 1 per cent to $258 million, but net loss attributable to shareholders plunged from $6 million in FY25 to $64 million in the year to June.
The parent of brands including McGuigan, Poco Vino and MadFish, is turning to innovation, acquisitions, and category expansion to ensure growth in a global wine market where red wine sales are losing momentum.
Leading that charge is Poco Vino, wine and spritzer products packaged in smaller 187ml bottles priced at around $7, targeting health-conscious younger consumers seeking convenience. “The launch of Poco Vino has been transformational for the Group sales outlook,” the company said in Thursday’s results filing. “This unique format product is achieving sales run rates that far exceed 750ml wine equivalents.”
More than 2.2 million units of Poco Vino were sold in just 11 months during FY26 across 12 global markets. In the UK, it was the fastest-growing glass-format minis brand in the June quarter. In October, AV will launch sparkling and spritz versions of the product in Australia and New Zealand. To date, Poco Vino has come in six red and white varietals.
Next year, the company will expand the brand with an Atlas-labelled premium variant in travel retail and on-premise channels, priced at around $20.
AV is also achieving success with its zero-alcohol McGuigan wine range, which it claims is the number-one selling alcohol-free wine globally and “continues to grow off a strong base”.
International brand acquisitions and partnerships are driving further growth. MadFish achieved 25 per cent sales growth during the second half of the year, with new distributors still to come on board in the UK.
Inventory culled
AV said in its ASX filing that reducing inventory was “a strong focus and strategic priority in FY26”. During the second half of the year it sold bulk inventory for cash while retaining sufficient volumes to enable growth in FY27, resulting in an impairment of $27 million. It entered the current year with around 90 million litres in stock.
The company has exited some vineyard leases and supply contracts to reduce its exposure to excess red wine volumes.
“In a year where cash generation was the primary focus, AV continued to make important decisions and targeted investments for future growth, supported by banking partners,” the company said. “Investments [are] focussed on two key areas: Top-line growth, margin expansion and reductions in fixed supply chain costs.”
The group forecasts its strengthened portfolio, streamlined cost base and enhanced operational performance will place it well to deliver sustainable growth and improved profitability in the years ahead.
“With these foundations established, AV expects to deliver a net positive cash position for the full financial year FY27, reducing debt for the first time in years while accelerating the growth of global innovation Poco Vino and acquisitions as critical to the group’s strategy.”
