The New Zealand Wine Company

Foley Family Wines Ltd - Half Yearly Report 31 December 2013

NZAX Release
 
21 February 2014
For Immediate Release
 
 
Foley Family Wines Limited – Half Yearly Report 31 December 2013
 
Mark Turnbull, Chief Executive Officer of Foley Family Wines Limited announced today that the Company’s unaudited half year result for the six months ended 31 December 2013 was a profit after tax of $1,036,000. This was a 215% increase over the $329,000 reported in the same period last year and mainly comes about due to revaluation gains recorded during the period and the inclusion of significant non-recurring costs in the period year.
 
Revenue for the 31 December 2013 half year was 21% down on the same period last year. Revenue in the prior year was boosted by the clearance of large amounts of bulk and bottled wine following the merger of the Foley Family Wines NZ and New Zealand Wine Company businesses on 4 September 2012.  Revenue in the current period has also been impacted by adverse exchange rate movements which have resulted in lower revenues for all New Zealand exporters.
 
The Company is concerned about the consequence of the continuing high exchange rates and the very large forecast volumes from the 2014 harvest and the impact that this will have on the industry as a whole in terms of wine sales volumes and prices.
 
The Directors are pleased with the strength of the Company’s balance sheet and improvement in equity from $57,348,000 in December 2012 to $61,577,000 in December 2013 and believe that this puts the Company in a strong position financially.
 
Mark Turnbull said that:
 
“Once again 2013 has been a busy and productive year for Foley Family Wines. In terms of highlights:
·       we’ve made some amazing wine that has performed extremely well in the recent wine shows;
·       the recommencement of bottling at Grove Mill in July 2013 has resulted in a return to grape-to-bottle in-house production, which is both extremely satisfying and allows better quality control; and
·       following the merger, we have established a great team of dedicated and talented vineyard, winery and corporate staff.
 
With these positive changes, we are starting to make progress in terms of global sales, albeit in a very challenging environment.”
 
 
 
Authorised for public release.
 
 
For further information please contact:
Mark Turnbull
CEO, Foley Family Wines Limited
PO Box 67, Renwick, 7243, Marlborough
Tel: +64 21 714 885