Marlborough Wine Estates Group (MWE) investor relations material

Executive summary

• Revenue declined 11.4% year-over-year to $8.35 million, driven by reduced bulk wine sales and lower international shipments.

• Net loss after tax was $3.3 million, compared to a $295,000 profit in FY23, mainly due to lower yields and higher costs.

• Branded sales revenue grew 5% and volume rose 2.9%, with New Zealand branded sales revenue up 16.7% and volume up 14%.

• The 2024 vintage yield was down 36% from last year, significantly impacting profitability.

• The company remains focused on expanding its global distribution network and premium branded wine sales.

Financial highlights

• Revenue: $8.35 million (down 11.4% year-over-year).

• Gross profit: $0.64 million, down from $3.63 million in FY23.

• Net loss after tax: $3.3 million (FY23: $295,000 profit).

• Net cash outflow from operating activities: $2.0 million (FY23: $619,000 inflow).

• Vineyard revaluation loss: $2.82 million (FY23: $1.05 million gain).

• Basic and diluted loss per share: $(0.011) (FY23: $0.001).

• Net tangible assets per share: $0.085 (FY23: $0.105).

Outlook and guidance

• Focus remains on building a robust branded wine business and expanding international distribution.

• Reduced 2024 vintage yield presents growth opportunities in key export markets.

• Industry export volumes grew in the second half of FY24, positioning for improved FY25 performance.

• Management expects recovery as New Zealand wine maintains strong global demand.