New Zealand-based wine producer Delegat Group has lowered its forecast for annual profits, pointing to the impact of US tariffs on sales.
In a New Zealand stock exchange filing published today (28 April), the company said the US move to place a 10% tariff on all imports into the country has led to “significant uncertainty expressed by our US distributors regarding forward shipments for Q4 (April – June 2025)”.
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“This uncertainty has led to a revised global case sales and profit guidance,” it said.
The Oyster Bay brand owner has now cut its projection on operating net profit after tax to $47-50m for the FY25 year, down from the previous forecast of $55-60m. Delegat’s financial year ends on 30 June.
It is also projecting global case sales of 3,182,000 for the year, a 5% fall from prior estimates and 12% lower than previous year’s sales.
Earlier this month, US President Donald Trump announced a 90-day pause on reciprocal tariffs for many countries, excluding China. However, a baseline tariff of 10% that took effect on 5 April remains applicable to all countries.
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By GlobalDataAmid these developments, Delegat has expressed its commitment to continued engagement with its distributors to confirm “forward trading plans”.
The group also highlighted that its trading performance for the nine months ending 31 March was “in line” with “forecast and market guidance”.
In a separate statement, the company said its 2025 harvest was of “excellent quality”.
The season yielded 47,461t of grapes, marking a 39% surge from the 2024 yield and 5% higher than the 2023 figure.
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