Foley Wines (FWL) H2 2024 earnings summary

Executive summary

• Revenue was stable at $66.4m, but profit after tax fell to a $4.1m loss, mainly due to a one-off $4.5m deferred tax expense and challenging market conditions.

• Operating EBITDA dropped 20% to $16.2m, reflecting higher marketing, insurance, and interest costs.

• Case sales declined 4% year-over-year, outperforming the broader NZ packaged wine market, which was down 21%.

• Significant investment in the USA led to a 60% increase in shipments to that market.

Financial highlights

• Total revenue: $66.4m (flat year-over-year).

• Operating profit before revaluations and tax: $4.1m (down from $10.2m).

• Net loss after tax: $(4.1)m (down 164% from $6.3m profit).

• Operating EBITDA: $16.2m (down 20%).

• Basic and diluted EPS: (6.21)cps (down from 9.65cps and 9.31cps, respectively).

• Operating cash flow: $4.3m (down from $10.3m).

Outlook and guidance

• Trading conditions remain subdued domestically and globally, with ongoing oversupply and high costs.

• Focus for the next 12 months is on reducing debt; no final dividend declared.

• Company expects improved position for FY26 if 2025 vintage is normal.