Time to raise a toast! NZX wine stocks under the spotlight: MWE, FWL, DGL

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Time to raise a toast! NZX wine stocks under the spotlight: MWE, FWL, DGL

 Time to raise a toast! NZX wine stocks under the spotlight: MWE, FWL, DGL
Image source: © Dudau | Megapixl.com

Highlights:

  • Entries for the nation’s most consumer-focused wine competition, the New World Wine Awards 2022 are now open
  • Marlborough Wine Estates Group projects further growth of its products in global markets
  • Delegat Group reveals delivering exceptional-quality harvest across all regions

Boasting unique soil and favourable climatic conditions, New Zealand offers suitable conditions for producing top-quality wines across its wine-growing regions. Its temperate maritime climate allows a huge range of wine varieties to thrive, which are globally acclaimed for their quality.

Entries for the New World Wine Awards are now open for 2022. It is pointed out that the said awards are the nation’s most consumer-focused wine competition, focusing on wines that retail for $25 or less. And the reward for the top 50 Gold medal-winning wines will be the distribution through several New World stores located across the country, thus getting extensive brand exposure through in-store displays.

In this context, let us skim through three NZX-listed wine stocks.

Source: © Mailthepic | Megapixl.com

Marlborough Wine Estates Group Limited (NZX:MWE)

Marlborough Wine Estates Group Limited owns and operates vineyards in the Awatere valley and has a market cap of nearly NZ$47 million.

The Group reported the completion of its 2022 harvest, recording a growth of 12% over the expected harvest volume, despite facing the pandemic and related restrictions.

MWE states continuous growth in international demand for NZ wines, thus projecting further growth of its products across global markets. Having a strong financial structure coupled with a low-debt position, it now anticipates an NPAT to be between NZ$0.3 million to NZ$0.4 million.

At the closing bell on 29 June, MWE declined 3.09% to NZ$0.157.

Foley Wines Limited (NZX:FWL)

Coming up next is Foley Wines Limited, which is an integrated wine company and has about NZ$95 million as its market cap.

The Company has revealed that its harvest for the 2022 vintage was nearing completion as 9,085 tonnes have been harvested, while the remaining 100 tonnes are still to be harvested. As per estimates, this represents a 65% increase in previous year’s harvest.

This has cemented FWL’s position for future growth.

Further, it has announced receiving the OIO approval for purchasing a vineyard in Central Otago from Zebra Vineyards, with an intention to plant 12.5 hectares of new vines.

At the closing bell on 29 June, FWL dipped 2.04% to NZ$1.440.

Delegat Group Limited (NZX:DGL)

Last on the list is Auckland-based Delegat Group Limited, which is committed to becoming a leading global super-premium wine company. Its market capital stands at over NZ$1 billion.

Early this month, the Group announced the completion of its 2022 harvest, delivering exceptional quality across all regions, bolstered by above-average rainfall. Though the 2022 harvest was down 7% over the forecasted yield, the said harvest of 44,861 tonnes is 20% above the low-yielding vintage of 2021, comprising 37,470 tonnes.

At the closing bell on 29 June, DGL was down 1.51% to NZ$10.440.

Bottom Line

New Zealand’s wines are world famous for their unique taste and outstanding quality.

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