Delegat Group (DGL) H1 2026 earnings summary

Executive summary

• Achieved higher sales and improved operating margins despite challenging wine industry conditions, including U.S. tariffs, global oversupply, and market pressures.

• Operating NPAT for the six months ended 31 December 2025 was $29.7 million, up 5% year-over-year, with reported NPAT up 82% to $22.8 million after fair value adjustments.

• Maintained premium brand positioning and expanded global distribution, especially for Oyster Bay, with strong growth in UK, Ireland, Europe, and Asia Pacific.

• Strong operating cash flow and disciplined capital management enabled further debt reduction and financial stability.

• Continued focus on value creation through price discipline, operational efficiencies, and market mix optimization.

Financial highlights

• Operating EBITDA reached $65.6 million, up 6% year-over-year; operating EBIT at $50.7 million, up 5%; operating gross margin improved to 49%.

• Global case sales totaled 1,688,000, up 3% (54,000 cases) year-over-year.

• Total sales revenue was $179 million, a 1% increase, driven by higher case sales and favorable FX.

• Operating cash flow was $62.3 million, supporting a reduction in net debt to $307 million, down 11% since December 2024.

• Cost of goods sold per case reduced by 5% to $53.80, supporting improved margins.

Outlook and guidance

• Full-year 2026 operating NPAT guidance maintained at $50–$55 million, excluding fair value and one-off items.

• Volume guidance for FY26 remains at 3.3 million cases, implying 4% growth in H2.

• CapEx for FY26 expected at $26 million, with future years likely averaging $10–$15 million for replacement needs.