Montana expands despite profit drop

Winemaker Montana Group has reported a 19 per cent fall in net profit for the 15 months to September 30.

The company was delisted from the Stock Exchange in October after British liquor company Allied Domecq took it over, but an issue of capital notes is still being traded.

The company said earnings before interest, tax, depreciation and amortisation for the period increased 27 per cent to $81 million.

After-tax profit from continuing operations increased by 33 per cent to almost $39 million, exceeding the company's budgeted forecast.

Montana said it continued its extensive capital expenditure programme with spending totalling $45 million during the period.

Expenditure included extensive land acquisitions, vineyard plantings and substantial winery and bottling hall equipment purchases.

The company also spent $152 million buying Corbans Wines.