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Highlights

  • Delegat aims to increase global sales by 8%, reaching 3,900,000 cases in the next three years.
  • The company plans to explore opportunities for price realization improvements across all markets to increase profitability margins.
  • For FY25, Delegat expects global sales to reach 3,585,000 cases.
  • The operating NPAT for FY25 is projected to be between NZD 55 million and NZD 60 million.

Established in 1947, Delegat Group Limited (NZX:DGL) is a global premium wine company which is majority-owned by the Delegat family. Focused on crafting world-class wines, the company has invested in state-of-the-art wineries and vineyards across prime grape-growing regions in New Zealand and Australia.

In the financial year 2024 (FY24), the company recorded NPAT of NZD 59.7 million, slightly up from NZD 59.3 million in the previous corresponding period. The company also saw a notable increase in operating EBIT during the period, which rose by NZD 5.9 million to NZD 102.7 million, driven by improved margins from product and country mix and favourable foreign exchange rates.

Operating EBITDA saw growth of NZD 8.1 million, reaching NZD 128.5 million, while operating expenses (before NZ IFRS adjustments) increased by NZD 3.2 million to NZD 68.5 million.

In FY24, the company achieved operating revenue of NZD 375.7 million from global case sales of 3,614,000 for the year.

Outlook

Delegat aims to increase sales by 8%, reaching 3,900,000 cases within the next three years. A key focus for this growth is driving Oyster Bay sales in North America, with the company committed to continued investment in that market. Additionally, Delegat plans to explore further opportunities to enhance price realization across all markets, which will contribute to improved profitability margins.

In FY25, Delegat expects global sales to reach 3,585,000 cases and forecasts an operating NPAT  between NZD 55 million and NZD 60 million.

Top 10 shareholders of DGL

The top 10 shareholders of DGL hold around 80.16% of the shares in the company. Jakov Nikola Delegat holds the highest stake in the company with 66.11% shareholding.

Share performance of DGL

DGL shares closed at NZD 4.76 apiece on 3 January 2025. In a week, DGL’s share price has increased by almost 3.83% and in a year, it has recorded a drop of nearly 26.51%.

52-week high of DGL is NZD 6.95, recorded on 29 April 2024 and 52-week low is AUD 4.45, recorded on 4 June 2024.

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 January 03, 2025. The reference data in this report has been partly sourced from EODHD/Others.