Oyster Bay profit down

Expansion costs and a lower than expected harvest have contributed to a 25 per cent fall in profit for Oyster Bay Marlborough Vineyards (OBMV).

OBMV, which until recently was the subject of an acrimonious takeover bid between Delegats Wine Estate and the investment vehicle of Marlborough businessman Peter Yealands, yesterday reported a net profit of $919,000 in the year to June 30, compared with the previous year's $1.225 million.

While grape sales were up 9.3 per cent from $6.545 million to $7.152 million, operating expenses came to $6.371 million, 33 per cent higher than 2004.

OBMV said this reflected "increased planted hectares coming into production".

A cold December had affected the harvest of 3303 tonnes, about 1000 tonnes lower than expected. Last year's harvest was 3155 tonnes.

Grape prices averaged $2165 per tonne at the company's three vineyards, compared with $2086 per tonne for the 2004 harvest.

Directors declared a 10c per share unimputed dividend to be paid on November 4.

- NZPA