The New Zealand Wine Company

High NZ Dollar will affect The New Zealand Wine Company Ltd 2007 Year

The New Zealand Wine Company (NZWC) Chairman, Mark Peters, today announced that given the recent head of steam in the $NZ now reaching its record post 1986 float high, particularly against the $US, the NZWC's financial results for the current 2007 financial year will suffer as other exporters are reporting.
 
 “The board and management of NZWC are doing what they can to mitigate the overall effect, but if the dollar stays anywhere near current levels for any length of time then the Company will struggle to match its 2006 result, let alone the record year it was projecting at the September 2006 AGM prior to the continuing upwards surge in the $NZ” Mr Peters said.
 
He added “This is a real pity given our record sales volume this year and the excellent work our management team has done to grow distribution through our export markets. It is very frustrating that we can get all our internal business fundamentals right and find operating margins steadily deteriorate by a factor outside our control”.
 
Concluding on a positive note Mr Peters added “The NZWC is well placed with its recent export sales growth paralleling Government's Export Year initiatives.  Associated profitability may once again be expected once the dollar moves closer to the more realistic fair values consistently projected by leading Banks and commentators”. 
 
Mr Peters also referred briefly to the current harvest which is well under way with early indications quality is very good.  A separate announcement on the harvest tonnages will follow by the end of April.
 
Authorised for public release.
For further information please contact:
Mark Peters
Chairman, The New Zealand Wine Company Limited
PO Box 67, Renwick, Marlborough
Tel: +64 3 578 7159
Fax: +64 3 578 8968