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Highlights
- The wine industry of NZ has developed and matured rapidly in the last decade.
- Marlborough Wine Estates hired Winesellers Ltd. as a special USA importer for its OTU Estate brand in November last year.
- In the next three years, Delegat intends to boost sales by 25% to 3976K cases.
The wine industry of NZ has developed and matured rapidly in last decade to produce an international product that is wanted by crucial markets globally and is now a major contributor to the economy.
On this note, let’s have a look at the performance of 3 NZX wine stocks.
Image source: © 2021 Kalkine Media®, Data source- EODHD/Others
Marlborough Wine Estates Group Limited (NZX:MWE)
Vineyard operator in the Awatere Valley, Marlborough Wine Estates, hired a US-based importer and marketer of fine wines, Winesellers Ltd, as a special USA importer for its OTU Estate brand in November last year.
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Winesellers is now strengthening its partnership to import and sell OTU Estate wines in all 50 states of the US. These wines will be available in the market from February this year.
MWE ended the day flat to close at $0.25.
Foley Wines Limited (NZX:FWL)
Foley Wines attained a record operating earnings of $8 million (+3.7% on pcp) amid the uncertainty and disruption of the supply chain and major logistics issues with shipping. The Group sold 565K cases (+6%) and 170,299 domestic cases (+8.6%) in 2021.
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The Group’s priorities for the long-term include high-quality winemaking, selling more at higher price points, leveraging the power of its portfolio and giving access to premium distribution across all channels.
FWL has invested $11 million in the development of an underground barrel facility in Martinborough.
FWL ended the day flat to close at $1.56.
Delegat Group Limited (NZX:DGL)
Delegat had a challenging but fantastic FY21. It recorded worldwide case sales of 3178K in 2021, down 3% from previous year because of global port congestion. However, during the quarter, it recorded an increase of 8% in operating NPAT and $74.7 million in good operational cash flows.
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In next three years, Delegat intends to boost sales by 25% to 3976K cases, with an operating profit of $57million-$61million in 2022.
DGL ended the day flat to close at $3.28.
Bottom Line
NZ’s wine industry is among the major export producing sectors of NZ and the industry is set to grow in the future provided transport costs are lowered, supply chains are unconstrained and border controls are eased.
(NOTE: Currency is reported in NZ Dollar unless stated otherwise)
