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, brand strength, quality, exclusive supply, and global distribution.

• Strategic focus remains on value growth, disciplined cost management, sustainability initiatives, and delivering credible results despite industry headwinds, including inventory resets and US tariffs.

• The year was marked by global headwinds such as declining wine consumption, inflation, and a U.S. tariff, but results were in line with guidance.

Financial highlights

• Global case sales were 3,188,000, down 12% year-over-year.

• Sales revenue was $346 million, a 7% decrease, but revenue per case increased by 5.5%.

• Operating EBITDA was $116.5 million, a 9% decrease from the prior year.

• Operating NPAT was $51.1 million, down 14% year-over-year; reported NPAT increased 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, used to repay debt.

Outlook and guidance

• FY26 operating NPAT is forecasted between $50–$55 million, assuming current market and FX conditions and excluding fair value and one-off items.

• Forecasting an improvement in case sales for 2026, with a target of 3.6 million cases in three years.

• Capital expenditure expected to be halved in FY 2026 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.