The New Zealand Wine Company

Marlborough Winery Remains Positive

The New Zealand Wine Company (NZWC) announces an unaudited net profit after tax for the December 2008 half year of $702,000 – a decrease of 32% on the prior 2007 year $1,029,000.
 
Total revenue reported for the half year was $6,213 million – an increase of 11% on the prior 2007 year $5.601 million.
 
Chairman Alton Jamieson said that:
 
Sales and net earnings for the half year have been negatively impacted by the overhang of wine stock that is available for sale on the open market from the record 2008 Marlborough harvest, and there is still a lot of uncertainty in the wine industry around clearing the remaining overhang of wine stocks.”  
 
“The weaker New Zealand Dollar against the US Dollar, Australian Dollar and the Pound has had a positive impact on earning for the half year.”
 
 “Projected sales volumes for the second half of the June 2009 year are on target to increase in line with forecasts.
 
“The company is not able to confirm net earnings guidance for the second half of the June 2009 year as the need to mark to market at each balance date makes it impossible to forecast the swings in the movements in exchange and interest rates under NZIFRS. In addition the biological bearer-asset adjustments cannot be determined until after the 2009 harvest and year-end balance date valuations of these assets have been undertaken.”
 
“Directors consider that the underlying earnings and future growth opportunities for Marlborough Sauvignon Blanc remain positive for NZWC once the current wine stock overhang is sold through and when supply and demand comes back into balance.”
 
A fully imputed interim dividend of 2 cents per share for the half year will be paid to shareholders on 3 April 2009.
 
A full copy of the Half Yearly Report for the six months ended 31 December 2008 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 21 448 332