Nobilo trims profit outlook

By DITA DE BONI

Revenue and profits are up in the half-year but Nobilo Wines says its initial post-tax profit forecast for full-year 2000 will not be achieved.

In a statement accompanying the company's half-year results yesterday, Nobilo predicted that profits would be ahead of the $1.73 million achieved last year but would fall short of the originally predicted $3.53 million.

The final performance for the six months to last December 31 includes a full half-year contribution from the Nobilo/Selak operations, compared with four months in 1998 after the company's initial public offering.

Consequently, revenues rose 25.4 per cent to $30.5 million for after-tax profits of $1.54 million, up 92 per cent on the previous period.

Earnings per share rose 5.7 per cent, from 3.3c last half-year to 3.5c this period. A dividend of 2c a share will be paid on March 31.

Pre-Christmas domestic sales in the lead-up to the millennium underpinned the results, with turnover dominated by the lower-priced Australian varieties from Nobilo's 23.6 per cent shareholder BRL Hardy.

"Supermarket sales now account for some 50 per cent of domestic sales," said managing director Nick Nobilo.

"The Banrock Station and Hardy's ranges, distributed by the Nobilo group, continue to outperform other brands in the still white and red categories."

Nobilo said export sales in the first half had been steady but would grow in the second half-year "as the effectiveness of the company's offshore channels provided by BRL Hardy become more obvious."

It predicted the first-half profit of $1.54 million would be matched in the second half-year.

Nobilo shares closed steady at 90c yesterday.