Australian Vintage has launched a new wine range alongside the release of mixed half-year results for its fiscal 2025.
In the first six months ended 31 December, the McGuigan wines producer saw reported revenue drop 7.4% to A$126.1m ($79.7m), while reported gross margins were down 11% at A$35.4m.
However, the group said its first-half figures marked its “best cash performance in four years”, with normalised cash outflow improving by A$11m, compared to the same period in 2023, to A$8m.
Mixed into the results, Australian Vintage revealed plans to launch a range of wines under the Poco Vino brand, which uses a “make where sold” sourcing framework.
The “format-based wine innovation” will look to deliver “significant cost efficiencies whilst aligning with consumers’ willingness to pay a higher price”, The Shy Pig brand owner said.
In Europe, the wine sourced for Poco Vino will come from France and Italy, while in the US it will come from Napa, California. For the group’s Asia-Pacific market it will be sourced from Australia.
Australian Vintage was unable to provide further information on the range when asked by Just Drinks.
Commenting on the new range, CEO Craig Garvin said: “Early orders are extremely encouraging and ahead of expectation. Major UK and Australian retailers have agreed to range the product, which is set to launch in the 2025 calendar year.”
He said the group was expecting Poco Vino pre-orders for FY26 to hit more than A$8m, making the range “the most exciting launch in AVG’s history”.
Garvin added: “We continue to pursue partnership, consolidation and acquisition opportunities to premiumise our portfolio which will be fully funded through non-core asset sales.”
In its first half period, Australian Vintage booked an A$473,000 net loss, down 117% on reported net profits of A$2.8m in the same period in 2023.
The group also saw declines in reported and underlying EBITDAs, with the former dropping 22.7% to A$11.2m and the latter decreasing 20% to A$13.2m.
Underlying EBITS dropped A$2m on the year prior to A$6m “reflecting focus cost out performance while navigating challenging industry-wide trading conditions”, the group said.
Australian Vintage also maintained market share in the UK, Australia, New Zealand in the period, showing “the underlying strength of the business despite the industry navigating difficult market conditions”.
The Tempus Two owner revealed a revised sales strategy in August as it looked to boost cash flow and return on capital.
Earlier in 2024, the business had been looking to raise capital and lower its debts, through efforts which included a share offer and asset sales.
Garvin was reappointed as CEO in October just five months on from ceasing his contract.
Australian Vintage chairman James Williamson said at the time that “the board felt it was important for Craig to be involved in the search process”.
Margaret Zabel, the chair of Australian Vintage’s people, remuneration and nomination committee, also then said Garvin: “has demonstrated his ability to create an effective high-performing team, build a strong culture, and develop enduring relationships with customers and other stakeholders.
“He is the right person to take Australian Vintage forward and we are looking forward to working with him to create value for our shareholders to deliver great wine brands to our customers.”
In its fiscal 2024, Australian Vintage saw its revenue grow 1% to A$261m. Underlying EBITS increased 24% at A$13m and underlying NPATS grew 29% to A$5m.
However, the company saw a steep drop in statutory net profit, having declined 2,421% compared to the previous year, posting a loss of A$93m.
