Which are 2 prominent NZX wine stocks to explore before 2022?

Highlights

• The NZ Government is investing in a $18.7-million programme to maintain the sustainability of Sauvignon Blanc grapevines.
• Marlborough Wine Estates Group conducted its ASM on Friday.
• Delegat Group expects operating profit between $57 million-$61 million for 2022.

NZ Agriculture Minister Damien O’Connor declared on Friday that the Government was investing in a programme that will help New Zealand’s Sauvignon Blanc grapevines to keep on flourishing in NZ conditions. The new $18.7-million programme, led by the Bragato Research Institute, is a seven-year-long plan to introduce genetic diversity into NZ vines.

New variants of the grape variety will serve as insurance against future risks from diseases, pests and altering markets while also adding new taste and aroma profiles.

On this note, let’s see how these 2 NZX-listed wine stocks are doing as 2021 is coming to an end.

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Marlborough Wine Estates Group Limited (NZX:MWE)

Marlborough Wine is an NZ-based company that owns and runs vineyards in the Awatere valley in Marlborough. The Group released its annual shareholder meeting presentation on 10 December.

MWE reported a 5% rise YOY in total sales to $6.7 million in FY21 with a 41% increase in branded wine sales to $3.9 million in the period.

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However, the Group’s 2021 Vintage (process of collecting grapes and making wine) was down by 26% on the 2020 vintage’s harvest. The lower yield reduced the volume of grapes and bulk wine available for customers and impacted total sales in FY21. This resulted in upward pressure on grape pricing in the 2021 vintage.

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MWE has strengthened its partnerships with both Foodstuffs and Countdown in NZ and has been growing its international distribution since July 2021.

MWE ended the day flat to close at $0.24.

Delegat Group Limited (NZX:DGL) 

Auckland-based global wine firm, Delegat Group, conducted its AGM on 7 December. The Group witnessed a difficult but positive FY21. It achieved a global case sales of 3,178,000 in 2021, down by 3% on previous year due to the effect of port congestion worldwide.

However, it posted an 8% rise in operating NPAT and strong operational cash flows of $74.7 million for the period.

RELATED READ: How are 3 NZX wine stocks doing amid soaring demand?

Delegat plans to grow its sales by 25% to 3,976,000 cases over the next three years and expects operating profit between $57 million-$61 million for 2022.

DGL ended the day flat to close at $14.2.

Bottom Line

The wine industry is anticipating that the new programme will avert losses of nearly $540 million per annum by 2046 while also providing different environmental advantages.

(NOTE: Currency is reported in NZ Dollar unless stated otherwise)