Foley Wines (FWL) AGM Presentation summary

Performance overview

• Sales revenue reached $66.4m, up 6%, with bottled sales of 610,000 cases, a 9% increase, but EBITDA fell 22% to $12.6m and operating earnings dropped 66% to $1.39m.

• Reported after-tax loss was $1.86m, a 55% increase in losses compared to the prior year.

• Operating cashflow improved to $16.2m from $4.3m, while capex was reduced to $3.5m from $5.8m, focusing on debt reduction and productivity investments.

• Total harvest increased 35% to 8,638T, with Marlborough achieving its largest Sauvignon Blanc harvest at 6,864T.

• Export case sales rose 14.6% against a 7.1% decline in total NZ export case sales, with strong growth in Australia (+27%), Asia/Pacific (+115%), and Rest of World (+67%).

Strategic initiatives and sustainability

• Continued premiumisation strategy is driving sales and positioning for future growth.

• Ongoing vineyard replanting and investment in underperforming sites to boost productivity.

• Sustainability efforts include transition to super lightweight bottles, expanded solar capacity, and native replanting programs.

• Grove Mill site now powered entirely by solar at peak, reducing carbon footprint.

• Focus on memorable food and wine experiences through partnerships with hospitality venues.

Market conditions and immediate priorities

• The industry faces significant oversupply and downward pressure on pricing, with at least two years expected before market equilibrium.

• Cost increases across the supply chain are impacting margins, especially from recent vintages.

• Immediate priorities include supporting distribution partners, prudent cost and capex management, debt reduction, and timely sell-through of the 2025 vintage.

• Inventory is well positioned, with clear routes to market and 2025 vintage shipping since July.

• Confidence remains in the business model and brand strength despite challenging conditions.