AVG - Australian Vintage
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Re: AVG - AUSTRALIAN VINTAGE LTD
I think this one has serious problems. I only started looking at it because I couldn't understand why CWT was so cheap. I have concluded that it is because 1/3 of its vineyards are tenanted by these guys. For 08 they made a tiny profit (eps=1c) but had negative operating cashflow. Also their cashflow was -3m and they ended the year with 1m of cash. It will be interesting to see their next annual report.
Oh I just checked their half-year 09 results
http://www.australianvintage.com.au/Investors/ResultsPresentations.aspx
I would not touch these with a barge-pole. They lost 127m in those 6 months, operating cashflow was negative 13m. I'm surprised the banks haven't pulled the plug.
I think this one has serious problems. I only started looking at it because I couldn't understand why CWT was so cheap. I have concluded that it is because 1/3 of its vineyards are tenanted by these guys. For 08 they made a tiny profit (eps=1c) but had negative operating cashflow. Also their cashflow was -3m and they ended the year with 1m of cash. It will be interesting to see their next annual report.
Oh I just checked their half-year 09 results
http://www.australianvintage.com.au/Investors/ResultsPresentations.aspx
I would not touch these with a barge-pole. They lost 127m in those 6 months, operating cashflow was negative 13m. I'm surprised the banks haven't pulled the plug.
Asa long time holder I remain in because the value has been so destroyed that its not worth selling. On the positive side Comsec have them on a 440% improvement in the current financial year I have doubts about this despite some strong efforts they are beset by the following problems
excess grape supply in Australia this year leading to probable excess wine production
Their export markets are suffering from the GFC
They have been unable to sell a major wine production facility although they did pick up a penalty fee when the sale fell through.
The supermarkets now have an almost duopoly on wine retail so much for the accc they wouldnt know competition if it drove over them
excess grape supply in Australia this year leading to probable excess wine production
Their export markets are suffering from the GFC
They have been unable to sell a major wine production facility although they did pick up a penalty fee when the sale fell through.
The supermarkets now have an almost duopoly on wine retail so much for the accc they wouldnt know competition if it drove over them
So_Cynical
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I reckon good wines have never been this cheap...i got some Banrock station wines last week for less than $6 a bottle at a Coles outlet.
Its probably a good time to be buying into the wine industry...i figure this is about as bad as it gets, with all the talk of over production, falling consumption and sales, Aussie dollar strength, irrigation uncertainty, drought, MIS failures and the GFC in general.
When there's so many negatives around its easy to forget what a great Aussie industry this is.
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Well the market liked their announcement today, up 67%. That finance arrangement might let them earn their way out of the hole they are in.
prawn_86
Mod: Call me Dendrobranchiata
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My old man is actually a wine grape growe, and due to the fact i have had a lot of exposure to the industry it would take a lot to get me to invest in it. The margins are very slim, there is a hell of a lot of competition, demand is constantly changing (meaning it is hard to get the right grapes) and the weather can have a huge impact.
Not my cup of tea. (Or glass of wine in this case). Although i guess SC did well out of them
Well done
Not my cup of tea. (Or glass of wine in this case). Although i guess SC did well out of them
Well doneyeah was wondering how long should i look to hold on them.
i got in around 0.135 and still holding on.
So_Cynical
The Contrarian Averager
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Although i guess SC did well out of them
No
not me...just watching the whole sector as it meets my over sold buying criteria, its almost like debt is not a dirty word any more :dunno: AVG is just one of
the many stocks that have turned around recently, on 1 positive announcement.
hows that saying go...so many stocks so little money.
AVG are still predicting a 75% increase in NPAT this is down from 100% due to the strong Australian dollar . High value branded wines volume increased by 22%. The company would appear to be on the path to recovery . However the industry as a whole would seem to be still suffering from excess grape supply even though overall crush has fallen.
Porper
Ralph Nelson Elliott
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Breakout feasible but some distribution at today's high. Very weak close on large volume (for this illiquid stock). Need some better closes.
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Good observation @Porper another push higher started the nearly two year decline in price.
After some corporate restructure price is once again back at two year highs. Price is looking much more bullish here. If you look closely at the daily chart the two recent dips in price were accompanied with lower volume. No significant selling this time at this level.
Disclosure: I have nibbled.
After some corporate restructure price is once again back at two year highs. Price is looking much more bullish here. If you look closely at the daily chart the two recent dips in price were accompanied with lower volume. No significant selling this time at this level.
Disclosure: I have nibbled.
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Have started following winery shares while consuming some of their products to celebrate pre Christmas days and two are of my interest.
TWE and AVG. I liked AVG and interestingly noticed the volume of AVG has shot up few times than their recent sales. Volume picked up to more than 700000 on Friday (look at the volume on previous days) and today (Monday 17/12) by lunch time it has shot up more than 1 million shares with no particular news. Don't know if they learnt Miner is consuming lots of red
On serious front - it may not be such a simple math because with increased volume the price has gone down. Pasted three extracts from ASX today .
Enjoy the festivity and go for AVG (conflict of interest as I put a buy order on AVG at 50 cents and found it has gone through completely)
and two are of my interest.TWE and AVG. I liked AVG and interestingly noticed the volume of AVG has shot up few times than their recent sales. Volume picked up to more than 700000 on Friday (look at the volume on previous days) and today (Monday 17/12) by lunch time it has shot up more than 1 million shares with no particular news. Don't know if they learnt Miner is consuming lots of red
On serious front - it may not be such a simple math because with increased volume the price has gone down. Pasted three extracts from ASX today .
Enjoy the festivity and go for AVG (conflict of interest as I put a buy order on AVG at 50 cents and found it has gone through completely)
So_Cynical
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Under 50c per share seems good value, was thing about AVG for the 2019 tipping comp ~ was only 5 or 6 years ago that there was an over supply and some vines were getting ripped out, now supply and demand are in balance...really should of been buying in the doom and gloom rather than the current glass half full perhaps.
So_Cynical
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Trading at 48c now, from 1st Jan 2019 the Chinese tariff on Australian imported wine is zero.
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Australian Vintage Limited Delivers Record Full Year Profit Result of $19.6 million
A very strong performance in Australian Vintage Limited’s (ASX: AVG) core UK and Australian businesses together with improved production efficiencies enabled AVG to record a 79% Net Profit after tax improvement for the 12 months to June 2021. The result is the highest AVG has achieved over the last 10 years. Key financial highlights:
• Net Profit after tax (NPAT) up 79% to $19.6 million
• EBIT (Earnings before tax and interest) up 59% to $30.4 million
• EBITS (earnings before tax, interest and SGARA) up 48% to $31.2 million
• Total Revenue up $6.8 million to $274.0 million
• Cash flow from operating activities up $22.8 million to $45.0 million and net debt reduced by $24.5 million to $42.8 million
• Sales of our 4 key brands, McGuigan, Tempus Two, Nepenthe and Barossa Valley Wine Company (BVWC) up 12%
• Earnings per share up 79% to 7.0 cents per share
• ROCE (Return on Capital Employed) improved by 70% to 7.5%
• Total Shareholder Return (TSR) of 83% over FY21
• Final dividend of 2.7 cents per share, franked to 60%
DYOR
WHOOPS
i missed this one , i was looking at it as a ( partial ) replacement for CCL , but then got distracted chasing gold producers
have some commitments this afternoon
might have to re-check the numbers again tonight
CAUTION a high risk China will play games with their wine imports
A very strong performance in Australian Vintage Limited’s (ASX: AVG) core UK and Australian businesses together with improved production efficiencies enabled AVG to record a 79% Net Profit after tax improvement for the 12 months to June 2021. The result is the highest AVG has achieved over the last 10 years. Key financial highlights:
• Net Profit after tax (NPAT) up 79% to $19.6 million
• EBIT (Earnings before tax and interest) up 59% to $30.4 million
• EBITS (earnings before tax, interest and SGARA) up 48% to $31.2 million
• Total Revenue up $6.8 million to $274.0 million
• Cash flow from operating activities up $22.8 million to $45.0 million and net debt reduced by $24.5 million to $42.8 million
• Sales of our 4 key brands, McGuigan, Tempus Two, Nepenthe and Barossa Valley Wine Company (BVWC) up 12%
• Earnings per share up 79% to 7.0 cents per share
• ROCE (Return on Capital Employed) improved by 70% to 7.5%
• Total Shareholder Return (TSR) of 83% over FY21
• Final dividend of 2.7 cents per share, franked to 60%
DYOR
WHOOPS
i missed this one , i was looking at it as a ( partial ) replacement for CCL , but then got distracted chasing gold producers
have some commitments this afternoon
might have to re-check the numbers again tonight
CAUTION a high risk China will play games with their wine imports
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Planned Retirement of Chief Financial Officer Australian Vintage Limited (ASX: AVG)
announces that Michael Noack will retire as Chief Financial Officer (CFO) after 27 years with Australian Vintage. Mr Noack will retire as CFO from March 2022 and remain with the Company in an advisory capacity for approximately 12 months to support with the transition of the role. AVG Chairman, Richard Davis said “Mike is leaving the business in a healthy state and we sincerely thank him for his dedication and efforts.
His extensive experience and financial acumen have been highly valued by the Board, and we wish him all the best for the future”. The Company is well advanced in an executive search process to fill the CFO position and anticipates an announcement will be made regarding the successor in the near future. This announcement was authorised for release by the AVG Board.
DYOR
i do not hold this share , but do have a buy order in the market
announces that Michael Noack will retire as Chief Financial Officer (CFO) after 27 years with Australian Vintage. Mr Noack will retire as CFO from March 2022 and remain with the Company in an advisory capacity for approximately 12 months to support with the transition of the role. AVG Chairman, Richard Davis said “Mike is leaving the business in a healthy state and we sincerely thank him for his dedication and efforts.
His extensive experience and financial acumen have been highly valued by the Board, and we wish him all the best for the future”. The Company is well advanced in an executive search process to fill the CFO position and anticipates an announcement will be made regarding the successor in the near future. This announcement was authorised for release by the AVG Board.
DYOR
i do not hold this share , but do have a buy order in the market
Dona Ferentes
Abrió la caja, vio al gatito, y sonrió
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45c
Australian Vintage (ASX: AVG) has joined its much larger rival Treasury Wine Estates in reporting difficult trading conditions and the need for intense cost-cutting.
TWE revealed its problems in Australia and the US earlier this month and promised action, cost cuts and other changes with the August release of its 2022-23 annual results.
Australian Vintage yesterday revealed a $9 million write down and a decision to suspend its final dividend - previously, 3.4c a share in Nov 2022.
Thanks to what it termed ‘challenging conditions,’ the company said it was concentrating on cost cutting (because of an inability to pass on cost pressures as higher prices for its wines).
It said net debt is expected to finish between $52 million and $57 million at June 30, down from net debt of $75 million a year ago. That will remain a focus heading into 2023-24.
The company made it clear it has survived the mix of cost pressures, the difficult market conditions and then the flooding and heavy rain which chopped the size of its harvest by 20%.
AVG’s CEO, Craig Garvin said the company remains “confident in our strategic plan and are highly enthused by the performance of our innovative and premium brands.”
“We continue to gain market share across all key geographies despite the tough trading environment. We are making proactive decisions today to both improve our financial performance as well as our ability to operate with agility to our strategic plan.”
As part of that plan, the company made clear the balance sheet was a priority over dividends as it concentrates in costs and profit ‘maximisation’.
“As expected, the trading environment through FY23 has been challenging with the Company absorbing ~$26m of hyper-inflationary costs over the past two years and being limited in its ability to pass on these costs given the impact of market discounting at the top-line.
“While a material portion of these hyper-inflation costs (e.g. freight costs) receded during the financial year, a portion continue to adversely affect the cost base.
“Despite these challenges, AVG has continued to win market share across all its key geographies ensuring stability in its revenue line through FY23.
“Importantly, the Company has continued growth in its innovation and premium brands, which has offset declines in the value segment (declining in line with the overall wine market). For FY23, our pillar brand revenue contribution is expected to be in-line with the 78% contribution achieved in FY22.
“The much-reported adverse weather events and flooding in early 2023 resulted in a vintage intake amounting to 80k tonnes versus last year’s vintage of 102k tonnes (~20% decline).
“The magnitude of the decline in throughput and lower than anticipated vintage necessitated a non- cash winery production fixed cost write off amounting to ~$9 million. This will impact FY23 results and benefit cost of goods sold in future years.
“In one of the toughest vintages in Australia in many years, AVG has outperformed the overall industry decline of 40%."
AVG also confirmed “it currently has significant headroom under its debt facility, and the Company is currently in active discussions with NAB to further extend its term beyond September 2024.
“However, given the current environment, AVG is taking proactive steps (as outlined) to both reduce the quantum of net debt as well as implied leverage multiples.”
In other words no dividends for a while.
Australian Vintage (ASX: AVG) has joined its much larger rival Treasury Wine Estates in reporting difficult trading conditions and the need for intense cost-cutting.
TWE revealed its problems in Australia and the US earlier this month and promised action, cost cuts and other changes with the August release of its 2022-23 annual results.
Australian Vintage yesterday revealed a $9 million write down and a decision to suspend its final dividend - previously, 3.4c a share in Nov 2022.
Thanks to what it termed ‘challenging conditions,’ the company said it was concentrating on cost cutting (because of an inability to pass on cost pressures as higher prices for its wines).
It said net debt is expected to finish between $52 million and $57 million at June 30, down from net debt of $75 million a year ago. That will remain a focus heading into 2023-24.
The company made it clear it has survived the mix of cost pressures, the difficult market conditions and then the flooding and heavy rain which chopped the size of its harvest by 20%.
AVG’s CEO, Craig Garvin said the company remains “confident in our strategic plan and are highly enthused by the performance of our innovative and premium brands.”
“We continue to gain market share across all key geographies despite the tough trading environment. We are making proactive decisions today to both improve our financial performance as well as our ability to operate with agility to our strategic plan.”
As part of that plan, the company made clear the balance sheet was a priority over dividends as it concentrates in costs and profit ‘maximisation’.
“As expected, the trading environment through FY23 has been challenging with the Company absorbing ~$26m of hyper-inflationary costs over the past two years and being limited in its ability to pass on these costs given the impact of market discounting at the top-line.
“While a material portion of these hyper-inflation costs (e.g. freight costs) receded during the financial year, a portion continue to adversely affect the cost base.
“Despite these challenges, AVG has continued to win market share across all its key geographies ensuring stability in its revenue line through FY23.
“Importantly, the Company has continued growth in its innovation and premium brands, which has offset declines in the value segment (declining in line with the overall wine market). For FY23, our pillar brand revenue contribution is expected to be in-line with the 78% contribution achieved in FY22.
“The much-reported adverse weather events and flooding in early 2023 resulted in a vintage intake amounting to 80k tonnes versus last year’s vintage of 102k tonnes (~20% decline).
“The magnitude of the decline in throughput and lower than anticipated vintage necessitated a non- cash winery production fixed cost write off amounting to ~$9 million. This will impact FY23 results and benefit cost of goods sold in future years.
“In one of the toughest vintages in Australia in many years, AVG has outperformed the overall industry decline of 40%."
- AVG said it was looking at June 30 revenues in the range of $255 – 260 million which would be line ball with 2022’s $260.1 million.
- Underlying EBITDAS (that’s accounting for the regenerating assets in winemaking – vines and grapes) of ~$26 – 28 million, down sharply from 2022’s $45.7 million.
- Reported EBITDAS of ~$34 – 36 million, versus FY22A reported EBITDAS of $43.7 million.
AVG also confirmed “it currently has significant headroom under its debt facility, and the Company is currently in active discussions with NAB to further extend its term beyond September 2024.
“However, given the current environment, AVG is taking proactive steps (as outlined) to both reduce the quantum of net debt as well as implied leverage multiples.”
In other words no dividends for a while.
