New Zealand’s Foley Wines posted higher sales of bottled wines in the first half, thanks to its strong export performance.
The company’s bottled sales revenue grew 12.6 per cent to NZ$32.3 million as case sales rose 21 per cent to 296,000.
Case sales to Europe surged 36 per cent to 75,000, while case sales to Australia soared 37 per cent to 56,000.
Case sales to the US increased 9 per cent to 47,000 but case sales in New Zealand fell 2 per cent to 91,000. Sales to the rest of the world swelled 108 per cent to 27,000 cases.
Meanwhile, the company’s profit tumbled 35.1 per cent to $1.1 million attributed to investment in sales support to key customers to overcome the discounting of New Zealand wines and higher cost of goods from the smaller 2024 vintage.
“This strategy was critical as it enabled us to increase sales against the trend and move through the higher-cost inventory. This will lead us to ship the 2025 vintage from Marlborough on a timely basis,” said Foley Wines chairman Paul Brock.
He said the company expects the release of the 2025 vintage will lower the cost of goods and increase gross margin as it hopes for a better financial position next year with the downward pressure on interest rates.
Earlier this month, Foley Wines said Mark Turnbull will step down as CEO on April 30.
