KEY POINTS:
The sun is shining on wine exporter Delegat's Group as harvests and profits rise.
The NZX-listed company said a strong second-half trading performance had allowed the company to lift its forecast for year-end profit to $18.5 million - 12 per cent higher than the previously advised $16.5 million.
Improved selling prices during the last quarter, IFRS adjustments and a higher than budgeted 2008 harvest had helped to increase the profit, it said.
Managing director Jim Delegat said: "The 2008 harvest has delivered both quality and quantity and positions the company well for the continued growth of its Oyster Bay brand in the global super-premium market."
Delegat's 2008 harvest was 26,680 tonnes, which was 20 per cent more than budgeted yields and 45 per cent higher than the previous year's.
Favourable growing conditions during the summer had resulted in early flowering and an abundant fruit set, while new plantings had come into production, the company said.
Meanwhile, production at Oyster Bay Marlborough Vineyards was up 71 per cent on the previous year and 25 per cent ahead of budget at 7193 tonnes.
The NZX-listed vineyard - which is 50.1 per cent owned by Delegat's - said it had completed grape price negotiations with Delegat's Wine Estate.
Oyster Bay's revenue was up 64 per cent on the previous year at $15.6 million, with higher tonnage driven by summer growing conditions.
However, adverse weather in late March and early April had delayed the ripening of some of the harvest, with the resulting lower than expected fruit maturity and crop condition reflected in prices, Oyster Bay said.
New Zealand Winegrowers this month said 285,000 tonnes of grapes had been harvested nationally in 2008, 39 per cent more than in the previous year. Chief executive Philip Gregan said the harvest was larger than forecast because of a favourable growing season.
"This reflects the upside of agricultural risk in our industry which in recent years has often worked against us with spring frosts or cool weather during the critical flowering period."
New Zealand wine exports for the year ended February were up 18.5 per cent at $767.3 million. The bigger harvest was an opportunity to increase sales during the coming year towards a target of $1 billion of exports by 2010, Gregan said.
"At the same time, the larger harvest will present a challenge to winery sales and marketing efforts to ensure that New Zealand's premium image goes from strength to strength."
Delegat's shares were steady yesterday at $1.90. Oyster Bay was also unchanged at $2.65.
WINE HARVEST
* 285,000 tonnes of grapes nationally in 2008.
* National harvest is up 39 per cent on last year.
* Profit forecast at Delegat's is 12 per cent up on previous estimate.
