How did Marlborough Wine Estates (NZX:MWE) fare in FY22?

Highlights

• MWE reports a revenue growth of 8%

• The company also reported improved profits after tax

• It received several international acclaims and accolades

New Zealand’s prominent wine company, Marlborough Wine Estates Group Limited (NZX:MWE), reported its unaudited FY22 results on 29 August. The wine company with several international acclaims returned to profitability and expansion of its wine brands in key markets in the year.

MWE reported a revenue growth of 18% at NZ$7.96 million over pcp. Its branded wine sales increased 10% from 38,000 to 42,000 cases. The company’s gross profit increased from NZ$1.2 million to NZ$2.91 million, signifying a 127% YoY growth.

The company also reported an improved profit after tax of NZ$328,012 for FY22 due to the expansion of international markets,  and improved efficiency of its operations.

                    Image source: © Dudau | Megapixl.com

In FY22, the company signed several distribution agreements with partners in the UK and the US as well as strengthened partnerships in its Australasian and North American markets.

In international markets, it focused on the `premiumisation’ of its branded wines despite disruptions caused by the COVID-19 pandemic.

In the local market, however, the wine company made significant progress in the distribution of its premium wines with the acquisition of branded wine distribution with Countdown.

Harvested volumes were also up in FY22, up 35% on 2021, despite COVID-19 restrictions that impacted the region. Sales of bulk grapes were also recorded in FY22.

CEO of Marlborough Wine Estate, Catherine Ma, said that although the company faced several challenges, the team was very focused on delivering results. Despite reduced supply from the 2021 vintage, the company was able to grow in NZ’s international markets like the US and the UK.

Because of the focused approach of the team, MWE was able to report improved profitability.

Accolades and Reviews

The company received several accolades and top reviews in FY22.

These include New Zealand: The NZ International Wine Show, Gold for its OUT Marlborough Sauvignon Blanc 2021, Asia Sakura, Japan’s Women’s Wine Awards 2022 and US James Suckling, 91 points. Its OUT Marlborough Pinot Rose 2021 received the New Zealand: International Wine Show, Gold, USA, Limited Release Chardonnay 2021, and New Zealand; Bob Campbell, 95 points, Gold, etc.

Other Wine company

Delagat Group Limited (NZX:DGL) reported record global sales of 3,360,000, up from 182,000 over pcp. This was 6% growth. Its operating NPAT was down 11% to NZ$58.1 million while operating EBITDA was down 8%. The company’s reported NPAT was up 2% over pcp at NZ$63 million. DGL received the Australian Drinks Award 2022 for its white wine.