KEY POINTS:
Wine company Delegat's is confident its annual profit forecasts for this year will be achieved after posting a strong six-month result despite a high dollar.
First-half revenue for the 2006-07 financial year jumped $22.3 million or 59 per cent to $60.3 million, reflecting strong demand for Delegat's and Oyster Bay brands.
Net profit jumped 189 per cent or $4.1 million to $6.3 million.
Also, the pre-tax operating surplus of $10.4 million was 17 per cent of revenue. That compared to $3.7 million or just under 10 per cent of revenue for the same period last year.
Managing director Jim Delegat said yesterday that historically the group generated 40-45 per cent of its annual result in the first half.
But by the end of last year it had generated 49 per cent of the revenue and 46 per cent of the net profit forecast in last year's Delegat's investment statement and prospectus.
"The board is confident that the projections in the ISP will be achieved," said Delegat.
The latest $6.3 million net profit was also higher than the $5.2 million achieved in the second half of the 2005-06 financial year.
Delegat said global demand for Oyster Bay in major export markets continued through more support from supermarkets and other distributors and, with more "off-premise" sales, provided a sound base for growth.
The good results came "despite the continuing high value of the NZ dollar, which the group continues to monitor through its structured foreign exchange management programme", Delegat said.
The second stage of a Marlborough winery development had been speeded up after grape supply increased.
No interim dividend was declared. Net tangible assets increased from 45c a share to $1.18. Delegat's shares closed yesterday down 5c at $2.70.
