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Highlights

  • FWL’s H1FY25 profit after tax declined by 35.1% YoY to NZD 1,085,000.
  • The company completed 2025 harvest in May 2025, totalling 8,638 tonnes, up 35% YoY and 6% above 2023 levels.
  • The company anticipates near-term profit pressure due to higher 2024 vintage costs and Sauvignon Blanc oversupply.

Foley Wines Limited (NZX:FWL) is a collection of iconic wineries from New Zealand’s top wine regions, unified by the goal of producing globally enjoyed wines that reflect the land and craftsmanship behind them.

In the first half of the financial year 2025 (H1FY25), the company’s reported profit after tax declined by 35.1% YoY to NZD 1,085,000, due to increased costs of goods associated with the smaller 2024 harvest, along with additional spending on sales initiatives to support key customers in response to ongoing discounting pressures on New Zealand wines. Operating cash flow for the period increased by 272% YoY to NZD 10.99 million, up from NZD 2.95 million in the prior year. In H1FY25, operating earnings increased by nearly 61.3% YoY to NZD 2.03 million.

Business update:

On 14 May 2025, FWL announced that it has completed its 2025 vintage harvest, totalling 8,638 tonnes across its Marlborough, Martinborough, and Central Otago based wineries, reflecting an 35% increase from 2024 and 6% above the 2023 harvest.

Company Outlook

Foley Wines expects profitability to remain impacted in the near term due to elevated costs linked to the smaller 2024 vintage, market oversupply of Marlborough Sauvignon Blanc, and continued price pressure.

The company anticipates a higher yield from the 2025 harvest in the Marlborough and Martinborough regions, while Central Otago is expected to see a slightly lower yield, though still above the long-term average. Meanwhile, the market price for Sauvignon Blanc grapes is projected to be around 15% lower than that of the 2024 vintage.

However, with well-managed inventory and the transition to a larger, lower-cost 2025 vintage, the company anticipates improved gross margins and a better financial position in FY2026, especially if interest rates ease.

Share Performance

The stock has witnessed an upside of ~1.51% and ~9.83% over the last one week and one month respectively. Moreover, it is trading above the average 52-week high price of NZD 0.85 and 52-week low price of NZD 0.52. FWL stock closed at NZD 0.67 per share on 26 June 2024.

Support and Resistance 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 26 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.