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Highlights

  • Case sales of FMW rose 21% YoY to 296,000 in 1HFY25, with operating earnings jumping 61.3% YoY and operating cash flow surging 272% YoY.
  • Despite revenue growth in 1HFY25, net profit after tax declined by 35.1% YoY due to high costs from a smaller 2024 vintage and market oversupply pressures.
  • On back of early indicators, the company expects higher yield from the 2025 harvest in Marlborough and Martinborough.

Foley Wines Ltd (NZX:FWL) offers a collection of iconic wineries from New Zealand’s renowned wine regions. In the first half of the financial year 2025 ended 31 December 2024 (1HFY25), the company recorded a significant surge in case sales to 296,000, marking a 21% increase year-on-year, while bottled sales revenue climbed to NZD 32.32 million, up 12.6% YoY. Operating earnings grew sharply by 61.3% YoY to reach NZD 2.03 million in 1HFY25, and operating EBITDA also improved, rising 11.4% YoY to NZD 7.91 million.

Most notably, operating cash flow soared by 272% YoY to NZD 10.99 million.

However, reported profit after tax fell by 35.1% YoY to NZD 1.09 million in 1HFY25. This decline is attributed to the increased cost of goods stemming from the smaller 2024 vintage, an oversupply of Marlborough Sauvignon Blanc, and pressure on selling prices.

During the reported period, the company recorded a higher current ratio of 3.19x, significantly above the industry median of 1.57x, along with a quick ratio of 1.14x compared to the industry’s 0.98x.

In 1HFY25, the cash cycle of 423 days was reported, far exceeding the industry median of 97.8 days. Additionally, the debt-to-equity ratio stood at 0.47x, significantly above the industry’s 0.02x

Outlook

The company stated that its inventory levels are healthy and will transition smoothly into the 2025 vintage, which is expected to carry a lower cost base — paving the way for stronger gross margins. Additionally, easing interest rates could further support the company’s financial recovery.

Early indicators suggest a higher yield from the 2025 harvest in Marlborough and Martinborough, with Central Otago expected to deliver slightly lower yields, though still above the long-term average.

Share performance of FWL

FWL shares closed 1.59% lower at NZD 0.62 per share on 10 April 2025. Over the past year, FWL’s share price has dropped by approximately 39.22%, while over the past three months, the stock has gained around 6.90%.

The company’s 52-week high stands at NZD 1.04, recorded on 8 April 2024, and the 52-week low is NZD 0.52, recorded on 17 December 2024.

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 10 April 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.