DGL
26/08/2013 08:30
FLLYR
REL: 0830 HRS Delegat's Group Limited
FLLYR: DGL: DGL - Full Year Results 2013
Results for announcement to the market
Reporting Period 12 months to 30 June 2013
Previous Reporting Period 12 months to 30 June 2012
Amount (000s) Percentage change
Revenue from ordinary activities $229,660 (+4%)
Profit from ordinary activities after tax attributable to shareholders
$41,216 (+62%)
Net profit attributable to shareholders $41,216 (+62%)
Audit The financial statements attached to this report have been audited and
are not subject to a qualification. A copy of the audit report applicable to
the full financial statements is attached to this announcement.
Comments Refer to the Full Year Review appended.
Dividends
The Directors have declared a final dividend of 10.0 cents per share. The
dividend will be fully imputed and a supplementary dividend of 1.7647 cents
will be paid to overseas shareholders in accordance with Listing Rule 7.12.7.
Cents per share
- Final Dividend for the year ended 30 June 2013 10.0 cents
Imputed Cents per share
- Final Dividend for the year ended 30 June 2013 3.8889 cents
Record date 27 September 2013
Dividend Payment Date 11 October 2013
Net Tangible Assets per share
Current Year Previous corresponding year
Net Tangible Assets per share $2.15 $1.83
DELEGAT'S GROUP LIMITED
Results Announcement - 2013
Delegat's Group Limited (Delegat's) is pleased to present its operating and
financial results for the year ended 30 June 2013.
Performance Highlights
- Achieved global case sales of 1.946 million.
- Achieved sales revenue of $222.0 million.
- Achieved operating NPAT of $26.3 million.
- Generated Cash from Operations of $39.2 million.
- Acquisition of the assets of Barossa Valley Estate Limited, including a 41
hectare vineyard and 5,000 tonne winery in the Barossa Valley, South
Australia.
The Group presents its financial statements in accordance with the New
Zealand equivalents to International Financial Reporting Standards (NZ IFRS).
The Directors continue to be of the view that the results reported under NZ
IFRS do not provide adequate insight into the Group's underlying operational
performance, primarily due to a number of fair value adjustments that are
required to be reported on.
To better understand the operating performance, the Group has published an
Operating Performance report. This supplementary report eliminates from each
line in the Statement of Financial Performance all fair value adjustments.
Operating Performance
An operating NPAT of $26.3 million was generated compared to $25.6 million
last year. Operating EBIT of $44.6 million is $1.1 million higher than last
year. Operating expenses, including one-off acquisition costs for Barossa
Valley Estate of $1.9 million (before NZ IFRS adjustments) at $81.1 million
are $4.0 million higher compared to last year.
'In-market' case price realisations are being maintained in each of the major
markets.
Delegat's achieved Sales Revenue of $222.0 million on global case sales of
1.946 million in the year. Sales Revenue is up $6.9 million on last year,
due to global case sales being 5% higher, which offset the ongoing impact of
adverse foreign exchange rate changes. The adverse foreign exchange rate
changes have resulted in case price realisation of $114.1, compared with
$116.3 achieved in 2012.
The Group's Oyster Bay brand is established as a leading Super-Premium wine
brand in New Zealand, Australia, the United Kingdom and Ireland. The Oyster
Bay brand continues to gain momentum in the important "Growth Market" of
North America, achieving sales growth of 25% to 670,000 cases. The Group
continuing to focus on growing sales volumes to realise the potential of the
Oyster Bay brand.
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 year-end:
- Biological Assets (Vines) - The Group's vineyards have been revalued at the
reporting date, resulting in a higher value attributable to Biological Assets
of $2.9 million in 2013 (2012: $1.4 million);
- Harvest Provision Release (Grapes) - Inventory is valued at market value,
rather than costs incurred, at harvest. Any fair value adjustment is
excluded from Operating Performance for the year, by creating a Harvest
Provision. This Harvest Provision is then released through Cost of Sales
when inventory is sold in subsequent years. This represents the reversal of
prior periods' fair value adjustments in respect of biological produce as
finished wine is sold in subsequent years. In 2013, the market value of the
company grapes exceeded the costs incurred by $13.0 million. This difference
was primarily due to the increased yields for the 2013 vintage (up 42% YOY)
and higher grape prices. This write-up, plus the impact of prior year's
vintages being sold has resulted in a net write-up of $14.2 million for the
year (2012: $0.1 million);
- 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-up of $3.5 million (2012: $1.5
million write-down);
These together with minor adjustments in respect of share-based payments, net
of taxation, amount to a write-up of $14.9 million.
Reported Accounting Performance
Accounting for all fair value adjustments under NZ IFRS and the non-cash
accounting adjustments, the Group's reported audited financial performance
for the year ended 30 June 2013 is $41.2 million.
Cash Flow
The Group generated Cash Flows from Operations of $39.2 million in the
current year, which is a decrease of $10.3 million on the record $49.6
million achieved last year, primarily due to the investment for the higher
2013 harvest/inventory and other working capital items. A total of $73.7
million was invested in additional property, plant and equipment during the
year, including the acquisition of the productive vineyards: Kaituna Vineyard
in Marlborough ($13.1 million), Matariki Vineyard In Hawkes Bay ($8.5
million), and the assets of Barossa Valley Estate Limited in South Australia
for NZ$28.6 million (A$24.1 million), all of which will provide earnings
growth into the years ahead. The Group distributed $9.1 million to
shareholders in dividends. Additional borrowings of $41.8 million were drawn
down to fund the increased capital investment during the year.
The Group has Net Debt of $134.9 million, compared to $91.9 million in 2012 -
an increase of 47%.
2013 harvest
As previously announced the 2013 harvest amounted to 28,884 tonnes, which was
4% up on target yields and an increase of 42% compared to the 2012 vintage.
The Group has closely managed its inventory throughout the 2013 financial
year. The higher 2013 harvest has allowed the Group to rebuild the depleted
carry-forward inventory levels for Chardonnay, Pinot Noir and Merlot. The
Marlborough Sauvignon Blanc 2013 was released early in May 2013.
Dividends
The Directors consider that the underlying operational performance and strong
cash flows fully justify the maintenance of dividends. Accordingly, the
Directors are pleased to advise they have approved a fully imputed dividend
payout of 10.0 cents per share. The dividend will be paid on 11 October 2013
to Shareholders on record at 27 September 2013.
ENDS
For further information please contact:
Jim Delegat
Chief Executive Officer
Delegat's Group Limited
Telephone: +64 9 359 7300
End CA:00240147 For:DGL Type:FLLYR Time:2013-08-26 08:30:09
