Foley Wines Limited Analysis

Overview

Founded as Grove Mill Wine Company Limited, the company was established in 1988 when a group of Marlborough grape growers and business people recognised the potential of Marlborough as a premier wine-growing region. The early vintages achieved many wine awards to national and international acclaim. The Company changed its name from Grove Mill Wine Company Limited to The New Zealand Wine Company Limited in June 2002, it was listed on NZX since November 2003 under the symbol of NWC.

Foley Family Wines Limited, who operates wineries located in California and Washington State, completed a merger deal with NWC in September 2012. The company's name changed from The New Zealand Wine Company to Foley Family Wines Limited, and the ticker code was changed to FFW. In 2014 FFW purchased Martinborough Vineyard Estates.

On 3rd December 2018, Foley Family Wines Limited migrated the NZX Main Board and changed their name to Foley Wines Limited and their ticker code to FWL.

Performance

The following information was extracted from Foley Wines Limited's Half Year results, released on 27 February 2025:

THURSDAY 27 FEBRUARY 2025 – Foley Wines announces half year result

CASE SALES 296,000 (up 21%)

BOTTLED SALES REVENUE $32,320,000 (up 12.6%)

OPERATING EARNINGS $2,034,000 (up 61.3%)

REPORTED PROFIT AFTER TAX $1,085,000 (down 35.1%)

OPERATING EBITDA $7,908,000 (up 11.4%)

OPERATING CASH FLOW $10,995,000 (up 272%)

Foley Wines has announced growth in case sales, sales revenue and operating earnings in the Company’s half yearly reported, published today.

Chairman Paul Brock said, “While the broader industry may have struggled with export sales over the last six months, the work the business has done on establishing strong export markets has paid off.”

The Company reported growth in case sales across all exports markets. “A key strategy has always been around not being over reliant on any one market and that is represented in our numbers”, said Brock. “Critically, we have established routes to market for what we produce and are not at the mercy of the bulk wine market. Bulk wine has never been a sales strategy for us and it contradicts our premiumisation strategy.”

Profit for the period net of tax attributable for the shareholders was $1,085,000, down 35.1%, impacted by higher cost of goods from the smaller 2024 vintage and investment in sales support to key customer to overcome the discounting of New Zealand wines.

“This strategy was critical as it enabled us to increase sales against the trend, and also move through the higher cost inventory. This will lead us to shipping the 2025 vintage (from Marlborough) on a timely basis,” said Brock.

The Company reports strong summer periods to date at its winery hospitality venues, Mt Difficulty, which achieved Gold Qualmark accreditation, and The Runholder, which has now welcomed over local and international 50,000 visitors.