Would these 3 NZX wine stocks make waves this year?

3 min read | January 09, 2022 12:00 AM NZDT | By Sonal

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.

 3 NZX wine stocks and their details

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.

ALSO READ: Why to look at 5 NZX food stocks ahead of 2022?

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.

RELATED READ: Which are 5 NZX pharma stocks to explore in 2022?

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.

DO READ: Look at these 5 NZX dividend stocks going ex in January 2022

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)


Disclaimer

The content, including but not limited to any articles, news, quotes, information, data, text, reports, ratings, opinions, images, photos, graphics, graphs, charts, animations and video (Content) is a service of Kalkine Media Pty Ltd (Kalkine Media, we or us), ACN 629 651 672 and is available for personal and non-commercial use only. The principal purpose of the Content is to educate and inform. The Content does not contain or imply any recommendation or opinion intended to influence your financial decisions and must not be relied upon by you as such. Some of the Content on this website may be sponsored/non-sponsored, as applicable, but is NOT a solicitation or recommendation to buy, sell or hold the stocks of the company(s) or engage in any investment activity under discussion. Kalkine Media is neither licensed nor qualified to provide investment advice through this platform. Users should make their own enquiries about any investments and Kalkine Media strongly suggests the users to seek advice from a financial adviser, stockbroker or other professional (including taxation and legal advice), as necessary. Kalkine Media hereby disclaims any and all the liabilities to any user for any direct, indirect, implied, punitive, special, incidental or other consequential damages arising from any use of the Content on this website, which is provided without warranties. The views expressed in the Content by the guests, if any, are their own and do not necessarily represent the views or opinions of Kalkine Media. Some of the images/music that may be used on this website are copyright to their respective owner(s). Kalkine Media does not claim ownership of any of the pictures displayed/music used on this website unless stated otherwise. The images/music that may be used on this website are taken from various sources on the internet, including paid subscriptions or are believed to be in public domain. We have used reasonable efforts to accredit the source wherever it was indicated as or found to be necessary.


AU_advertise

Advertise your brand on Kalkine Media

Sponsored Articles


Investing Ideas

Previous Next
We use cookies to ensure that we give you the best experience on our website. If you continue to use this site we will assume that you are happy with it.