26 Aug 2013

Wine maker records profit

2:33 pm on 26 August 2013

Delegat's annual profit has jumped 62% boosted by one-offs, but its underlying result rose a more modest 3%.

The wine maker says net profit was $41.2 million for the 12 months to the end of June, compared with $25.4 million the previous year - underlying profit was $26.3 million.

The one-offs included the near $2 million cost associated with buying the Barossa Valley Estate for $28.6 million which was completed in June, and a jump in the value of its vineyards and inventory of grapes.

Delegat's says it is maintaining the prices per case it charges in each of its major markets which include Britain, North America and Australia.

The number of cases sold rose 5%, offsetting a high dollar, which curtailed its annual sales gain to 3% or $222 million.

The wine maker says the previously announced 42% jump in its grape harvest to nearly 29,000 tonnes has allowed it to rebuild the depleted inventory levels for its chardonnay, pinot noir and merlot wines.