Profit sets Nobilo on track for export push

By Geoff Senescall

Nobilo Wines Group pipped its prospectus forecasts in releasing its maiden annual accounts and said that the current year's target was well on track.

The Auckland-based winemaker produced an 8.8 per cent lift in forecast after-tax profit for the year ended June 30 to $173 million.

Managing director Nick Nobilo said that the next profit step of $3.75 million, outlined in the prospectus for the current year, was achievable.

He said good progress had been made in integrating the group's three businesses - Nobilo Vintners, Selaks Wines and National Liquor Distributors.

Nobilo was now in a position to increase its presence in the marketplace and aggressively lift its export performance.

Nobilo's latest profit was struck on sales of $50.36 million, up from a forecast $46.77 million. This increase has been fuelled by greater growth in export sales in both Britain and the United States. Sales of imported wines in New Zealand were also above forecast.

Cashflow stemming from the improved sales, as well as the timing of delays in capital expenditure, resulted in borrowings being $2.8 million lower than the forecast $15.2 million.

Earnings before interest and tax were $3.78 million, compared with $3.74 million in the prospectus. The company had previously indicated a dividend of 3c a share for the year to be paid on October 15.