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Highlights

  • Delegat Group reported H1FY25 global case sales of NZD 1.63 million, down 15% YoY.
  • Cash from operations rose 111% to NZD 75.6 million in H1FY25.
  • The company invested NZD 43.2 million in vineyard and winery expansion during H1FY25.

Delegat Group Limited (NZX: DGL) is a New Zealand-based wine company that invests in wineries and vineyards located in premier grape-growing regions of Australia and New Zealand. In the first half of financial year 2025 (H1FY25), Delegat Group reported global case sales of 1.63 million cases, a decline of 15% compared to H1FY24. Operating EBITDA for the period stood at NZD 61.6 million, down 18% YoY, and operating net profit after tax (NPAT) declined by 25% YoY to NZD 28.3 million, while reported NPAT fell by 63% to NZD 12.5 million. Cash from operations increased by 111% YoY to NZD 75.6 million.

Recent Business Update

In late April 2025, Delegat Group revised its global case sales and profit guidance for FY25 following the introduction of a 10% U.S. import tariff announced on 3 April 2025. The tariff has created significant uncertainty among U.S. distributors regarding Q4 shipments (April–June).

Now, the company expects FY25 global case sales to reach 3,182,000 cases, reflecting a 5% drop from previous guidance. For the year ending 30 June 2025, operating net profit after tax of NZD 47-50 million is expected, compared to previous guidance of NZD 55-60 million. Through another NZX update, the company informed that it has completed its 2025 harvest, reporting a total yield of 47,461 tonnes, an increase of 39% over the low-yield 2024 harvest and 5% above 2023 levels. The harvest delivered excellent quality across all regions.

Company Outlook

The company stated that its Oyster Bay brand continues to maintain a leading position in the US market and has a network of distributors who are collaborating with the Group to navigate the ongoing market uncertainty.

The company invested NZD 43.2 million in vineyard development and winery expansion in New Zealand during H1 FY25 and remains well positioned to fund ongoing operations and future capital projects in both New Zealand and Australia.

Share performance of DGL

DGL shares ended at NZD 3.70 on 5 June 2025, slipping 0.27% intraday. Over the past month, the stock has declined by 0.80%, while the three-month and six-month performances show deeper losses of 21.28% and 28.16%, respectively. Year-to-date, the stock has dropped by 22.27%, and the quarter-to-date decline stands at 15.14%.

The company reached its 52-week high of NZD 6.06 on 24 September 2024 and hit a 52-week low of NZD 3.65 on 8 May 2025.

Resistance and support summary

Note 1: Past performance is not a reliable indicator of future performance.

Note 2: The reference date for all price data, currency, technical indicators, support, and resistance levels is 05 June 2025. The reference data in this report has been partly sourced from EODHD/Others.

Technical Indicators Defined:

Support: A level at which the stock prices tend to find support if they are falling, and a downtrend may take a pause backed by demand or buying interest. Support 1 refers to the nearby support level for the stock and if the price breaches the level, then Support 2 may act as the crucial support level for the stock.

Resistance: A level at which the stock prices tend to find resistance when they are rising, and an uptrend may take a pause due to profit booking or selling interest. Resistance 1 refers to the nearby resistance level for the stock and if the price surpasses the level, then Resistance 2 may act as the crucial resistance level for the stock.