The New Zealand Wine Company

June 2008 Full Year Annual Report

NZWC Financial Statements for the 30 June 2008 full year were prepared under NZ IFRS (New Zealand equivalents to International Financial Reporting Standards) for the first full year in the transition from reporting under the previous NZ GAAP Reporting Standards. Directors are focused on the cash based underlying earnings as reported under the result Before Biological Bearer-Asset Adjustments, as this represents the most transparent management financial performance for an agricultural exporter given NZWC’s reporting requirements under NZ IFRS.
 
The New Zealand Wine Company (NZWC) announces record net earnings for the 30 June 2008 full year with audited net profit after tax of a $1,351,000 result Before Biological Bearer-Asset Adjustments. This represents a 41% increase on the $960,000 result for the same period in 2007. The full NZ IFRS result was $2,044,000, including unrealized profit adjustments, compared to the equivalent $1,167,000 result for the previous 2007 year, an increase of 75%.
 
Basic earnings per share were 15.6 cps for the 30 June 2008 full year under the result Before Biological Bearer-Asset Adjustments and 23.6 cps under NZ IFRS.
 
Total revenue earned for the 30 June 2008 full year was $11,986,000 which represents an increase of 6% on the $11,309,000 earned for the same period in 2007.
 
Chairman Alton Jamieson said that:
 
“Wine sales revenue and net earnings for the past 12 months both reached record levels and are also projected to increase significantly over the next year from the record volumes of wine available from NZWC’s bumper 2008 harvest of 3,243 tonnes, a 44% increase in grapes harvested over the previous year.”
 
“NZWC’s CarboNZero certification will continue to provide an important point of difference to assist the company to increase its wine sales and also secure new wine listings in its key export markets.”
 
“The long awaited weakening of the NZD against the currencies of our primary export markets is encouraging and while the impact of the record Marlborough wine harvest on wine sales and worldwide pricing are unknown at this point NZWC Directors are cautiously optimistic about the future”.
 
A fully imputed final dividend of 5 cents per share for the full year will be paid to shareholders on 26 September 2008, which represents a 25% increase of 1 cent per share over the prior year final dividend.
 
A full copy of the Full Year Report for the twelve months ended 30 June 2008 and the Directors’ Report with comparative summary financial tables and explanatory notes is available on the NZWC web site, at: http://www.nzwineco.co.nz/financial.aspx.
 
Authorised for public release.
 
For further information please contact:
 
Alton Jamieson
Chairman, The New Zealand Wine Company Limited
PO Box 67, Renwick, Marlborough
Tel: +64 21 964 995
 
or
Rob White
CEO, The New Zealand Wine Company Limited
PO Box 67, Renwick, Marlborough
Tel: +64 3 572 8200