Financial results for Marlborough Wine Estates Group Limited (NZX:MWE) were released this Thursday morning and signs indicate that the Company is steadily building its local and global brand in line with its long term strategy. The results cover the six months ending 31 December 2020.
Marlborough Wine Estates lifted sales 19% for the half-year compared to the previous corresponding period. While gross profit remains much the same as the six months to December 2019, the net loss of $480K the company produced fell by 26.2% on pcp.
Contributing to the results, Marlborough wine estates note:
- The Company’s fulfilled its first large orders from Canada, Singapore, and Malaysia.
- Case orders from Japan, Finland, and Taiwan were undisrupted by the pandemic, and continue to remain a significant market for the group.
- Locally derived revenue increased in line with the company’s growth in market share. Operating costs grew in step with the growth of sales. Marlborough Wine Estates recognises that this is not sustainable and will begin cutting operating costs such as marketing in the immediate future.
- Revenue derived from bulk grape sales are not reflected in the current report as the product is sold in March. The cost of investment in vine growth, which is associated with bulk grape sales, is recorded in the current report.
On 11 February, at the time of writing, MWE shares were trading at $0.580, with no change since the market opened this Thursday morning.