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- Release Date: 27/02/14 10:30
- Summary: HALFYR: DGL: DGL - 2014 Interim Half Year Results
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DGL
27/02/2014 08:30
HALFYR
REL: 0830 HRS Delegat's Group Limited
HALFYR: DGL: DGL - 2014 Interim Half Year Results
DELEGAT'S GROUP LIMITED
Results for announcement to the market
Reporting Period 6 months to 31 December 2013
Previous Reporting Period 6 months to 31 December 2012
Amount (000s) Percentage change
Revenue from ordinary activities $130,012 (+1%)
Operating Profit from ordinary activities after tax (Operating NPAT) $20,168
(+5%)
Operating Profit from ordinary activities before interest, tax and
depreciation (Operating EBITDA) $38,104 (+6%)
Reported profit from ordinary activities after tax attributable to
shareholders (Reported NPAT) $17,788 (-8%)
Net profit attributable to shareholders $17,788 (-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 $2.22 (Last Year $1.94)
CHAIRMAN'S REPORT
Delegat's Group Limited (Delegat's) presents its unaudited operating and
financial results for the six months ended 31 December 2013.
Performance Highlights
- Achieved global case sales of 1.083 million.
- Achieved sales revenue of $121.2 million.
- Achieved record operating EBIT of $32.4 million.
- Achieved record operating NPAT of $20.2 million.
- Generated Cash from Operations of $11.5 million.
I am pleased to be able to report Delegat's Group has achieved a record
profit for the six months ended 31 December 2013. 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
A record operating NPAT of $20.2 million was generated compared to $19.2
million for the same period the previous year. Operating EBIT of $32.4
million is $2.0 million higher than for the same period in the prior year.
Operating expenses (before NZ IFRS adjustments) at $45.8 million are $3.4
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 $121.2 million on global case sales of
1.083 million in the six month period. Sales Revenue was down $2.2 million
on the same period last year, due to global case sales being 1% lower and
adverse foreign exchange rate changes. The adverse foreign exchange rate
changes have contributed to case price realisation of $111.9, compared with
the $113.2 achieved last year.
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:
- 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 $2.5 million;
- Biological Produce (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-down of
$4.2 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 $3.4 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 2013 amounted to a write-down
of $2.4 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 2013 is
as follows:
- Net Profit after Tax is $17.8 million;
- Earnings before Interest, Tax, Depreciation and Amortisation is $34.8
million;
- Operating Cash Flows are $11.5 million;
- Net debt increase of $13.7 million to fund capital expenditure for future
growth.
Looking forward
The Directors continue to have confidence in the resilience of the Group's
business model and its ability to deliver sustainable earnings into the
future. The Group is on target to achieve operating profit in line with
consensus of $29.0 million.
Robert Wilton
Chairman
Delegat's Group Limited
For further information contact:
Murray Annabell
Chief Financial Officer
Delegat's Group Limited
Tel: (64)9 359 7310
End CA:00247542 For:DGL Type:HALFYR Time:2014-02-27 08:30:19
