The New Zealand Wine Company

Foley Family Wines Reports a Solid Half Year Result

Highlights: Sales $17.49m, 12.1% above prior year Packaged Case sales 215,150, 21% above prior year Underlying Earnings $2.17m, 228.6% above prior year EBITDA $4.19m, 46.8% above prior year Operating cashflow $3.76m, 327% above last year. Mark Turnbull, Chief Executive Officer of Foley Family Wines Limited (FFW) announced today that the company’s unaudited half year result for the six months ended 31 December 2015 was a profit after tax of $1,632,000 compared with $400,000 for the same period last year. Underlying earnings of $2,172,000 was $1,511,000 higher than the same period last year. The Directors believe the results demonstrate the progress that the company has made over the last 12 months. Revenue for the 31 December 2015 half year was up $1,888,000 (12.1%) on the same period last year. This was largely due to an increase in sales to the USA being up 43% to 60,995 cases for the period. New Zealand sales were down 12% to 60,000 cases reflecting the highly competitive nature of the New Zealand market and the carry-through of wine from the large 2014 vintage for some wineries leading to aggressive domestic pricing. In total, the company achieved a 42% increase in packaged export case sales, which compares very favourably to the recently released New Zealand Wine Growers’ statistics which report an increase of 8% for the 12 months ended December 2015. The company has had strong interest from China for it’s brands. New distribution arrangements have been secured for the Grove Mill, Sanctuary and Te Kairanga brands. In the coming months, the company expects to conclude new distribution arrangements for other brands in the portfolio. Cash on hand of $5,289,000 reflects strong operating cashflow of $3,757,000 in the period. The Directors note that capital expenditure was well down reflecting no major capital expenditure requirements. Further, the company has paid a dividend of $1,044,000 and reduced bank debt by $576,000 during the period. Bill Foley, Chairman has stated “the company’s strong balance sheet and operational improvement mean that FFW is well placed to take advantage of future market opportunities as they become available.” 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 Email: mark@ffw.co.nz