Increased sales see wine group pouring back into business
The NZX-listed company's operating net profit after tax was 20 percent ahead of last year, at $61.5 million.
The Delegat Group, a prominent player in the wine industry, has reported impressive sales figures for the year 2026, despite facing various challenges. The NZX-listed company experienced a 20% increase in its operating net profit after tax, reaching $61.5 million, compared to the previous year. However, the net profit after tax decreased to $39.5 million, a 19% drop, primarily due to accounting rules and an impairment of Barossa Valley Estate assets.
The company managed to reduce yields for the 2026 harvest by almost 20%, resulting in a $9 million writedown. Nevertheless, the 2026 harvest produced exceptional quality grapes, with over 38,000 tonnes being produced across Marlborough, Hawke's Bay, and the Barossa Valley. CEO Murray Annabell reported that Delegat Group achieved global sales of 3.3 million cases in 2026, marking a 4% increase compared to the previous year.
Annabell highlighted the company's focus on driving demand for premium brands, expanding distribution networks, and implementing disciplined management practices. These efforts have led to significant improvements in sales, profitability, cash flow, and overall balance sheet strength. Despite the challenging trading environment, the company remains optimistic, forecasting a 5% increase in case sales over the next three years.
They anticipate global sales of 3.4 million cases in the upcoming year, with an operating net profit after tax expected to range between $62 million and $66 million.
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