Delegat profits up 37 per cent

Delegat said it had achieved record case sales. Photo / 123RF

Wine maker Delegat Group's unaudited profit after tax for the year to June 30 rose 37 per cent to $64.1 million, the company reported.

The figure includes fair value movements in its vines and derivatives, which increased profit by $3.3 million this year but had reduced earnings by $4 million the year before.

Delegat said it had achieved record case sales, up 9 per cent to 3.3 million cases, a touch above its February guidance of 3.2 million case sales.

Unaudited operating profit after tax was $60.8 million, up 20 per cent on last year's $50.8 million, and exceeding analysts' forecasts of $54.2 million.

Earlier this month, Delegat appointed a former managing director of the company, Graeme Lord, to the board.

The 52-year-old Lord had worked at Delegat for almost 20 years from 1999 to 2018, but also spent some time in the 2000s as chief executive of Macpac.

At the company's annual meeting last year, founder Jim Delegat was challenged on the age and diversity of its board members, which include 70-year-old Delegat, managing director John Freeman, 45, Rose Delegat, 69, Bob Wilton, 76, and independent directors Alan Jackson, 66 and Shelley Cave, 49.

The group's stated strategic goal is to build a global premium wine company, with a range of brands focused on internationally renowned New Zealand wine regions.

Current wine brands under the group umbrella are Oyster Bay, Delegat, and an Australian brand, Barossa Valley.

Shares in the company were recently trading at $12.76, having gained 10 per cent in the last 12 months.

Delegat will announce its audited full year results in August 2020.