Ann: HALFYR: DGL: DGL - Interim Results to 31 Dec

• Release Date: 24/02/12 10:30
• Summary: HALFYR: DGL: DGL - Interim Results to 31 December 2011
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DGL
24/02/2012 08:30
HALFYR

REL: 0830 HRS Delegat's Group Limited

HALFYR: DGL: DGL - Interim Results to 31 December 2011

DELEGAT'S GROUP LIMITED
Results for announcement to the market
Reporting Period 6 months to 31 December 2011
Previous Reporting Period 6 months to 31 December 2010

Amount (000s) Percentage change
Revenue from ordinary activities $127,347 (7%)
Profit from ordinary activities after tax attributable to shareholders
$14,654 (-8%)
Net profit attributable to shareholders $14,654 (-8%)

Audit The financial statements attached to this report have not been audited.

Comments Refer to the Chairman's Report appended.

Interim Dividend Cents per share Cents per share (imputed)
Not Applicable Not Applicable

Net Tangible Assets per share
Current Year Previous corresponding year
Net Tangible Assets per share $1.73 $1.50

CHAIRMAN'S REPORT
Delegat's Group Limited (Delegat's) presents its unaudited operating and
financial results for the six months ended 31 December 2011.
Performance Highlights
o Achieved global case sales of 1.022 million.
o Achieved record operating NPAT of $17.4 million.
o Generated Cash from Operations of $21.7 million.

I am pleased to be able to report another strong first half performance for
the six months ended 31 December 2011. Consistent with the last reported
results Directors produce both an operating report (before NZ IFRS
adjustments) and a financial report to provide a better understanding of the
Group's performance.
NZ$ millions Dec 2010 Dec 2009 Operating Performance
A record operating NPAT of $17.4 million was generated compared to $17.1
million for the same period the previous year. Operating EBIT of $28.3
million is $1.7 million lower than for the same period in the prior year.
Operating expenses (before NZ IFRS adjustments) at $41.7 million are $4.6
million lower compared to last year.  'In-market' case price realisations are
being maintained in each of the major markets.

NZ$ millions Notes Dec 2010 Dec
Delegat's achieved Sales Revenue of $119.0 million on global case sales of
1.022 million in the six month period. Sales Revenue was down $12.7 million
on the same period last year, due to global case sales being 9% lower and
adverse foreign exchange rate changes. This has resulted in case price
realisation of $116.40, compared with $116.93 achieved in 2010, the adverse
foreign exchange rate impacts partially offset by the positive impact of
changes in price, country and product mix.

NZ IFRS Fair Value adjustments
In accordance with NZ IFRS the Group is required to account for certain of
their assets at 'fair value' rather than at historic cost.  All movements in
these fair values are reflected in and impact the Statement of Financial
Performance.  The Group records adjustments in respect of three significant
items at the half-year reporting date:
o Biological Assets (Vines) - This represents the fair value of grapes that
are growing on the vines before harvest less the associated growing costs.
The net effect is a fair value write-down of $1.4 million;
o Harvest Provision Release (Grapes) - This represents the reversal of prior
periods' fair value adjustments in respect of biological produce as finished
wine is sold in subsequent years. The adjustment provides a write-up of $1.2
million;
o Derivative Instruments held to hedge the Group's foreign currency and
interest rate exposure.  The mark to market movement of these instruments at
balance date resulted in a fair value write-down of $3.6 million;
In addition the Group makes some minor adjustments in respect of share-based
payments. In aggregate, and after deducting taxation, the impact of fair
value adjustments in the period to 31 December 2011 amounted to a write-down
of $2.7 million.

Reported Accounting Performance
Accounting for all fair value adjustments under NZ IFRS the Group's reported
unaudited financial performance for the six months ended 31 December 2011 is
as follows:

o Net Profit after Tax is $14.7 million;
o Earnings before Interest, Tax, Depreciation and Amortisation is $30.3
million;
o Operating Cash Flows are $21.7 million;
o Net debt reduction of $6.0 million.

Looking forward
The Directors view the economic headwinds prevailing globally as challenging
and that the continuing strength of the New Zealand dollar is of the greatest
concern, the control of which is outside the business model.  Whilst the
grape supply imbalance has negatively impacted some segments of the industry
the Group continues to perform well through the strength of its Super-premium
Oyster Bay brand.

The challenges the Directors have confidence in the resilience of the Group's
business model and its ability to deliver sustainable earnings into the
future.  The drive to pursue those markets that deliver value continues and
the forecast on volumes and the resulting profitability.  The Group is on
target to achieve operating profit in the consensus range of $20.5 million to
$24.0 million.

Banking Facilities

It is with considerable pleasure I advise that our Bankers, Westpac, have
advised that the securities they hold over the Group's assets and
undertakings in support of the borrowings be discharged in favour of an
unsecured negative pledge.  Their decision is testimony of the level of
confidence they have in the Group.

Robert Wilton
Chairman
Delegat's Group Limited

ENDS

For further information contact:
Jim Delegat
Managing Director
Delegat's Group Limited
Tel: 009 359 7300
End CA:00219960 For:DGL    Type:HALFYR     Time:2012-02-24 08:30:33