Tough conditions hit NZ Wine Company
An oversupply of New Zealand wine blended with high levels of bulk wine sales, a strong dollar and tough competition has hit the NZ Wine Company’s bottom line.
The company said it expects an underlying loss before revaluations and income tax for the June 2011 year of up to $1.3 million.
NZWC chairman Alton Jamieson said the company was now focussed on a restructuring and recovery plan for the 2012 year.
Wine sales volumes for the full June 2011 year were 7 per cent lower than the year before at 174,000 cases and revenue for the was expected to be 14 per cent lower at $11.3 million.
NZWC’s 66 per cent interest in Lineage Imports LLC, a Californian import/distribution business also cost NZWC.
Lineage had incurred start-up and operating costs that would result in a net earnings loss at the end of June and NZWC’s share of that loss was expected to be up to $300,000.
read full article on stuff.co.nz
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