DGL 0.75% $6.60 delegat group limited ordinary shares

Ann: HALFYR: DGL: DGL - 2016 Interim 31 Dec 15 Results

  1. lightbulb Created with Sketch. 2
    • Release Date: 26/02/16 09:08
    • Summary: HALFYR: DGL: DGL - 2016 Interim 31 Dec 15 Results
    • Price Sensitive: No
    • Download Document  6.36KB
    					DGL
    26/02/2016 09:08
    HALFYR
    PRICE SENSITIVE
    REL: 0908 HRS Delegat Group Limited
    
    HALFYR: DGL: DGL - 2016 Interim 31 Dec 15 Results
    
    DELEGAT GROUP LIMITED
    
    Results for announcement to the market
    Reporting Period 6 months to 31 December 2015
    Previous Reporting Period 6 months to 31 December 2014
    
    Amount (000s) Percentage change
    Revenue from ordinary activities $140,275 (+23%)
    Operating Profit from ordinary activities after tax (Operating NPAT) $21,484
    (+5%)
    Operating Profit from ordinary activities before interest, tax and
    depreciation (Operating EBITDA) $40,774 (+5%)
    Reported profit from ordinary activities after tax attributable to
    shareholders (Reported NPAT) $19,161 (+96%)
    Net profit attributable to shareholders $19,161 (+96%)
    
    Audit: The financial statements attached to this report have not been
    audited.
    
    Comments: Refer to the Executive 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 $2.77 (Last Year $2.45)
    
    Executive Chairman's Interim Report 2016
    
    On behalf of the Board of Directors of Delegat Group Limited, I am pleased to
    present its operating and financial results for the six months ended 31
    December 2015.
    
    Performance Highlights
    - Record Global Case Sales of 1,267,000.
    - Record Operating NPAT of $21.5 million.
    - Capital investment of $55.9 million in growth assets including vineyard
    development and the Hawke's Bay Winery.
    - Net tangible assets per share up 13% on previous year to $2.77.
    - Oyster Bay received the 'Hot Brand' award from New York's highly regarded
    Impact Magazine for a sixth consecutive year.
    - Barossa Valley Estate Cabernet Sauvignon 2014 was awarded a Gold medal at
    the Sydney International Wine Competition.
    
    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 and reconciliation of Operating Profit to
    Reported Profit. This reconciliation eliminates from each line in the
    Statement of Financial Performance all fair value adjustments.
    
    Operating Performance
    A record Operating NPAT of $21.5 million was generated compared to $20.5
    million for the same period the previous year. Operating EBIT of $34.4
    million is $1.5 million higher than for the same period the previous year.
    
    Delegat achieved Operating Revenue of $128.6 million on global case sales of
    1,267,000 in the six month period. Revenue is up $20.3 million on the same
    period last year, due to global case sales being 12% higher and the
    favourable impact of foreign exchange rate changes.
    
    Operating Gross Margin is up 15% on the same period last year and was
    impacted by higher cost of goods per case arising from the lower yielding
    2015 vintage. Operating Expenses at $38.2 million are $8.0 million higher
    than the same period last year.  This is due to the impact of a weaker New
    Zealand currency on the translation of off-shore expenditure together with
    increased investment in in-market sales offices and marketing to drive
    long-term growth.
    
    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 $3.3 million (December 2014:
    $3.1 million);
    o 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. The adjustment provides a
    write-down of $5.3 million (December 2014: $7.5 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-up of $5.4 million (December
    2014: write-down of $4.3 million).
    These together with minor adjustments in respect of share-based payments, net
    of taxation, amount to a write-down of $2.3 million (December 2014: $10.7
    million).
    
    Cash Flow
    The Group generated Cash Flows from Operations of $15.1 million in the
    current half-year, which is a decrease of $3.6 million on the same period
    last year, primarily due to the timing of tax payments. A total of $55.9
    million was invested in additional property, plant and equipment during the
    year, including vineyard development in New Zealand and the Barossa Valley,
    and development of the Hawke's Bay winery, which will provide earnings growth
    into the years ahead. The Group distributed $11.1 million to shareholders in
    dividends. Additional borrowings of $54.6 million were drawn down to fund the
    increased capital investment during the six months.
    The Group has Net Debt of $251.5 million, compared to $202.0 million at 30
    June 2015 - an increase of 25% and well within the Group's long term bank
    debt facilities.
    
    Looking Forward
    The results achieved in the six months to December 2015 are testament to the
    strength of the Group's business model. Delegat Group is well positioned to
    pursue its strategic goal to build a leading global Super Premium wine
    company and deliver sustainable earnings growth in the years ahead. The Group
    is on target to achieve global case sales for the full year of 2,379,000, up
    8% on last year, and achieve full year Operating Net Profit After Tax in line
    with market consensus of $36.0 million, up 5% on last year.
    
    JIM DELEGAT
    Executive Chairman
    
    For further information please contact
    Graeme Lord - Managing Director
    DDI (09)359 7317 or Mobile 021 860 740
    End CA:00278378 For:DGL    Type:HALFYR     Time:2016-02-26 09:08:11
    				
 
watchlist Created with Sketch. Add DGL (NZSX) to my watchlist
arrow-down-2 Created with Sketch. arrow-down-2 Created with Sketch.