Australian Vintage Revenue Up 0.4%
Wine group's sales surge to A$258m despite growing losses
Australian Vintage, a wine group, has reported a stronger business despite pressure on profits, with a 0.4% increase in revenue to A$258m in the year to the end of June.
The company's annual losses grew due to an impairment charge on inventory, restructuring costs, and a strengthening Australian dollar. However, Australian Vintage's gross profit stood at A$31.9m, compared to A$69.4m a year ago.
Australian Vintage reported operating cash flow of A$4m, compared to a negative cash flow from operations of A$8m a year earlier. The company's negative free cash flow was A$14m, an improvement on A$19m a year earlier.
The company sold more than two million units of its single-serve wine brand Poco Vino globally in the year to the end of June. Poco Vino is a key part of Australian Vintage's strategy, with the company expecting to deliver a net positive cash position for the full financial year FY27.
## Why it matters The improvement in Australian Vintage's cash flow and revenue is significant, as it indicates that the company's efforts to boost cash, bolster its balance sheet, and cut costs are paying off. The growth of Poco Vino, which is sold in 187ml glass tubes, is a key driver of this success. With a stronger, more agile business, Australian Vintage is well-placed to deliver sustainable growth and improved profitability in the years ahead.
The company's expectations for a net positive cash position in FY27 are also a positive sign, as it would reduce debt for the first time in years. This would allow Australian Vintage to accelerate the growth of its global innovation and acquisitions, which are critical to the group's strategy.
## What happens next Australian Vintage's second-half revenue grew 2%, offsetting lower sales in the first six months of the year. The company's focus on cash generation, cost optimization, and strategic brand acquisitions and innovation is expected to continue, with Poco Vino and other innovative brands playing a key role in driving growth and profitability.
