Insights from the latest ASX reports

Australia’s major wine retailers, Woolworths (Endeavour)i, Wesfarmersii and MetCashiii, account for the majority of wine sales in Australia. They recently reported their full-year results to the ASX, which show:

• Metcash liquor sales up 3.7 per cent to $3.2 billion, with profit up 7.8 per cent to $62.1 million
• Endeavour sales up 4.7 per cent to $7.6 billion and EBIT up 3.0 per cent to $484 million
• Wesfarmers food and liquor up 5.8 per cent to $32.6 billion (liquor not reported separately)
• Wesfarmers to increase penetration of exclusive brands.

There are also two major wine companies listed – Australian Vintage Ltd (AVL) and Treasury Wine Estates (TWE). Some of the report highlights include:

• TWE net profit of $179.4 million (double the prior year)
• TWE sales up in all groups – Australia and New Zealand, Asia, Europe, Americas
• AVL net profit up $0.1 million to $7.2 million (up 16 per cent adjusting for foreign currency loss)
• AVL revenue up 5 per cent to $242.7 million.

The market was happy with TWE’s result, with trading up 17 per cent in the period since the report was released, while AVL’s share price is slightly down. The reports illustrate that the good news highlighted in Wine Australia’s Export Reports is flowing through into the balance sheets of some of the major corporations. 

Find each company’s reports here:

• Woolworths: http://www.asx.com.au/asxpdf/20160825/pdf/439m1zt58p40gj.pdf
• Wesfarmers: http://www.asx.com.au/asxpdf/20160824/pdf/439kwx7z57g7vz.pdf
• Metcash: http://www.asx.com.au/asxpdf/20160620/pdf/437zpx1l2szy6h.pdf
• Treasury Wine Estates: http://www.asx.com.au/asxpdf/20160818/pdf/439dh1h3c3c47v.pdf
• Australian Vintage: http://www.asx.com.au/asxpdf/20160824/pdf/439lf6kwl548hz.pdf
   

i Brands include BWS, Dan Murphy’s, NEXDAY, Pinnacle Drinks, Vinpac International, WineMarket, New Zealand WineSociety, CellarMasters, Langton’s, Summergate, Pudao Wines Dorrien Estate
ii Brands include Liquorland, Liquor Direct, Vintage Cellars, 1st Choice Liquor Superstore
iii Brands include Australian Liquor Marketers, The Bottle-O, Cellarbrations, IGA Liquor