Delegat's posts 57pc profit surge on Oyster Bay thirst

Jim Delegat, Managing Director of Delegat's. Photo / Greg Bowker.

Delegat's Group has unveiled a 57 per cent jump in annual profit, as it had recently predicted, as demand for its Oyster Bay brand wines surged, defying the global recession.

Net income rose to a record NZ$30 million, or 30.05 cents a share, from NZ$19 million, or 19.15 cents a year earlier, the company said in a statement today. Sales rose 37 per cent to NZ$229 million. The shares rose 2.3 per cent to NZ$2.22.

"The group's performance in the past year has demonstrated the resilience of its business model," said managing director Jim Delegat. "The current challenging business environment is likely to prevail throughout 2010." Still, the company expects "continued sales growth in 2010 and a profit at least in line with the past year's record performance."

The winemaker had global sales of 1.7 million cases in the latest year, up 20 per cent from 2008. It has expanded sales force in Australia, the U.K., the US and Canada and credits its 'in-market' sales team for the growth. Oyster Bay is now the leading New Zealand wine brand by sales in the U.K. and Australia.

Cash flow from operations soared to NZ$42.6 million from NZ$8.3 million in the latest year while the average price realization per case rose 11 per cent to NZ$124.59.The company will pay a final dividend of 8 cents a share.

-BUSINESSWIRE