Foley Wines (FWL) H2 2024 earnings summary

Executive summary

• Achieved a better second half despite industry headwinds, with case sales down only 4% year-over-year, showing improvement from the first half.

• Export case sales declined 5.8%, outperforming the industry’s 21% drop for packaged wine.

• Significant investment in the USA led to a 60% increase in shipments, despite a 22% industry decline in that market.

• Launched new hospitality venues and acquired the Toast Martinborough festival to enhance premium brand experiences.

Financial highlights

• Bottled sales revenue reached $62.5M, up 0.3% year-over-year.

• Operating earnings after tax were $4.1M, down 60% year-over-year.

• Reported a net loss after tax of $(4.1)M, a 164% decline year-over-year.

• Operating EBITDA was $16.2M, down 20% year-over-year.

• No final dividend declared for FY24 to prioritize debt reduction.

Outlook and guidance

• Focus remains on reducing debt over the next 12 months due to tough economic conditions and high interest rates.

• Company expects to sell through the 2024 vintage in a timely manner and anticipates improved conditions by FY26, assuming a normal 2025 vintage.