- The New Zealand Wine industry did well in the year 2020, despite COVID induced restrictions.
- Delegat recorded operating NPAT at $60.8 million, which was 20% on pcp in its annual report.
- In its annual results, Marlborough Wine noted 19% increase in the total sales revenue, noted at $6.4 million.
While the entire world was going through a very tough time owing to the ghastly pandemic in 2020, there were some industries that actually fared just fine. The wine industry in the country has witnessed exponential growth despite the COVID-19 related trade restrictions.
Source: © Jirkab | Megapixl.com
With all the fear and uncertainty that surrounded the world in the year 2020, and people stuck at their respective houses with very little to do, it was one of the best times for the alcohol industry.
People were drinking much more than they usually did, considering they were not working or working from home, for a substantially longer duration. Pouring a glass of red/white wine after a busy day with the kids or a stressful time watching the news keeping track of the COVID statistics across the world had become a common place.
According to the annual report for the period closed 30 June 2020 released by New Zealand Winegrowers Inc, there was $1.92 billion earned in the form of exports, which was 6% more than what was earned last year. The domestic sale of wines in the year amounted to be $500 million.
The chairperson for the NZ Winegrower’s Board, John Clarke revealed that the growing conditions for the year 2020 were almost perfect in most parts of the nation and there was a growth in the planting area by 2%, making it 39,935 hectares. The excellent export witnessed in the year 2020 is an indication of the fact that people across the world have enjoyed their whites and reds, despite being stuck at home under lockdowns.
With the help of techniques such as reaching the customers directly, through modes like online sales, there has been a rise in business. Besides that, big wineries have focussed their energies on distribution to big retail chains.
Let’s have a look at the performances of some of the Wine Companies of New Zealand
Delegat Group Limited
Deemed as number one wine exporter to the world, Delegat Group Limited (NZX:DGL) recorded an operating revenue of $302.9 million in the financial year closed 30 June 2020, which was a 9% increase from 2019.
On the other hand, the operating NPAT was recorded to be $60.8 million, which was 20% on pcp. The operating EBITDA for the duration was $116.8 million. There was also an operations cash flow of $84.3 million witnessed in 2020.
On 5 February, Delegat Group last traded at $14.400, down by 1.91%.
Foley Wines Limited
Another wine company that has done well in the year 2020 is Foley Wines Limited (NZX: FWL).
According to their annual report for the year ending June 30, 2020, it was revealed that the operating earnings was noted at $7,750,000, which was a 53.2% increase from the previous year. The profit earned was reported to have risen by 96.7% at 6,921,000. Besides, the sales revenue for bottled wines went up by 13.4% standing at $49,951,000.
On 5 February, Foley Wines traded at $1.970, down by 3.90% from its last close.
Marlborough Wine Estates Group Limited
A prominent name among wine companies in New Zealand, Marlborough Wine Estates Group Limited (NZX:MWE) disclosed in its annual report for the year ending on 30 June 2020, that the Company earned a 19% increase in the total sales revenue, noted at $6.4 million.
It was further added that the sales in bottles wines witnessed a massive increase of 68% making it $2.74 million. While the Group was able to manage the effects of the pandemic well, it showed a sturdy increase in terms of business. The adjusted EBITDA for 2020 was recorded to be $897,463 increasing on PCP where it was noted at $592,684.
On 5 February, Marlborough Wine Estates Group traded at $0.550, up by 1.85% from its last close.