Sales were up 9%, exchange rate movements were favourable and margins improved to achieve the excellent result.
For the company that now calls itself the leading New Zealand wine exporter, sales to the United Kingdom, Ireland and Europe were up 23% and went over one million cases for the first time.
North American sales were up 8% (1.438m cases), but down 5% in Australia, NZ and the Pacific Islands.
Sales revenue was up 10% to $294m, of which volume contributed 9% and value a net 1%, when the positive currency effects were included.
Exports of the non-perishable wine cases were not unduly disrupted by covid-19 and reduced sales to hospitality were offset by more retail spending.
At balance date June 30, Delegat had total assets of $800m, half of which is shareholders’ equity.
Over the past year, its share price has risen 20% to $13.20 although it did dip quickly in March, followed by a strong recovery.
Net debt came down by 11% to $240m and operating return on equity went up to 17.7%.
The directors declared a final dividend of 17c/share fully imputed, a repeat of the previous year.
The 2020 grape harvest produced exceptional quality across all three growing regions and the tonnage was up by 7% compared to 2019.
The outlook for the wine company includes 2% sales growth this financial year, followed by 7% growth expectations in each of the two following years.
Based on the current exchange rates, Delegat has forecast operating profit in the range $60m to $65m in FY2021.
It will also spend more than $50m on facilities and expansion in Marlborough, Hawke’s Bay and Barossa Valley, South Australia, almost twice the capex in FY 2020.
