Delegat Group (DGL) H2 2025 earnings summary

Executive summary

• CEO outlined a vision to build a leading global super-premium wine company, focusing on premiumization, global expansion, and brand strength, with disciplined cost management and sustainability initiatives.

• Delivered credible results despite global headwinds, including declining wine consumption, inflation, US tariffs, supply chain disruptions, and inventory resets.

• Decisive actions included price increases, inventory management, cost reduction, and capital expenditure rephasing.

Financial highlights

• Global case sales were 3,188,000, down 12% year-over-year, with sales revenue at $346 million (down 7%) and revenue per case up 5.5%.

• Operating EBITDA was $116.5 million, down 9% year-over-year, and operating NPAT dropped 14% to $51.1 million.

• Reported NPAT rose 56% to $49.0 million due to non-recurring tax changes and harvest impacts.

• Record operating cash flow of $105.7 million, up 86% year-over-year, enabled $31.5 million debt repayment.

• Net profit per case rose 13% on a comparable six-month basis.

Outlook and guidance

• Forecasts global case sales to increase by 13% over the next three years, targeting 3.6 million cases and operating NPAT of $50–$55 million in FY26, assuming current market and FX conditions.

• Capital expenditure expected to be halved in FY26 to around $26 million, with maintenance CapEx at the lower end of historical ranges.

• Asset base and ongoing investments are expected to support future sales growth.