The New Zealand Wine Company

Foley Family Wines Reports a Challenging Year

Foley Family Wines Limited (FFW) announces a Profit for the period after income tax of $3,056,000 on sales revenue of $33,147,000 for the Group for the year ended 30 June 2017. Chief Executive Officer of FFW, Mr Mark Turnbull, said: “The 2017 year has been a difficult year due to the November earthquake and a full year of post Brexit exchange rates. FFW recorded an operating profit before revaluations and income tax (“operating earnings”) of $4,979,000, compared with $4,339,000 for the previous financial year.” “The USA market continues to be a critical focus for FFW. Over the last two years, shipments to the USA are up 29% from 2015 levels, and this is after some major disruption due to one of our import partners having an ownership change in the first quarter of 2017.” “The directors fully acknowledge that 2017 was a difficult year and FFW did not meet its expectations. However, the directors firmly believe that FFW will become one of New Zealand’s foremost wines groups in the premium segment. The quality of the wine produced will set us apart from competitors in the long term and command a premium price. Nothing has changed from the central theme outlined last year, which is to extract maximum value from our existing assets. Central to this is the focus on growing higher price point sales at the super premium and ultra-premium levels.” “With the strength of the FFW balance sheet, the company is actively seeking new opportunities. Fundamentally, the company needs to now start building scale to maximise the long term returns to shareholders.” The Directors have resolved to maintain a final fully imputed dividend of 3 cents per share. The Annual Shareholders’ Meeting of FFW will be held in Marlborough this year. Further details will be provided in due course. 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