Delegat posts strong FY25 results despite market challenges, eyes growth

Delegat Group Limited announced a creditable Operating Net Profit After Tax of $51.1 million for FY25, alongside record operating cashflows of $105.7 million. This enabled the repayment of debt totaling $31.5 million and the successful refinancing of its NZD 420 million syndicated banking facilities. Despite US tariffs and industry supply imbalances, the company approved a fully imputed dividend payout of 20 cents per share, maintaining last year’s level. Reported NPAT increased to $49.0 million, up 56% from the previous year, partly due to a NZ IFRS biological asset valuation adjustment.

Global case sales reached 3,188,000 cases, a 12% decline from the prior year, attributed to US tariffs and distributor inventory rebalancing. However, sales in China saw strong growth, up 41%. The company remains focused on its premiumization strategy, with Oyster Bay Sauvignon Blanc leading in key markets globally and Pinot Grigio seeing significant growth in US retail. The 2025 harvest yielded exceptional quality fruit, with a 39% increase in tonnage from 2024.

Shareholders re-elected Gordon MacLeod as a director and approved the authorization for directors to fix the auditor's remuneration. Delegat provided FY26 guidance with global case sales of 3.3 million cases (up 3%) and an Operating Net Profit After Tax between $50.0 million and $55.0 million. The company projects FY27 case sales of 3.4 million and FY28 sales of 3.6 million, with North America being a primary growth driver.