New Zealand's Terra Vitae Vineyards and Craggy Range Vineyards both reported a rise in full-year profit on the back of a solid harvest and improving prices as wine remains one of the Pacific Nation's fastest growing exports.
Terra Vitae Vineyards reported total gross income from grape sales at $8.9 million in the year to June 30, up from $7.1m in 2015. After expenses, its operating profit of $3.4m was more than twice the $1.4m reported in the prior year. The company, which trades on the Unlisted Market, declared a dividend of 1.5 cents per share, which was paid on December 15, 2016, with a record date of November 30, 2016. The shares were last quoted at $0.48.
Craggy Range, owned by the Peabody family, reported an operating profit of $2m in the year to June, up from $916,444 in the prior period as group revenues rose. Profit for the year was $690,550 versus $222,975 in the year to June 2015. The company produces wine from Hawkes Bay and Martinborough in the North Island and Marlborough at the top of the South Island.
New Zealand's wine exports reached $1.6b in the year to October, up 7.1 per cent from the prior 12-month period. In 1960, wine exports were $51m. The industry, which aims to hit $2b of exports by 2020, has been bolstered by strong demand, supply constraints after a smaller 2015 vintage and a weaker New Zealand dollar against the U.S. dollar.
Terra Vitae Vineyards said its total production was 4,693 tonnes compared with 3,882 tonnes in the prior year and was 18 per cent higher than its budget forecast. Crop value increased in four of its five vineyards. Only Twyford Gravels, in Hawke's Bay, yielded below budget, which the company said was a direct result of untimely Easter rain.
