Highlights

  • Australian Vintage shares climbed 20.69% on 27 May 2026 after the company secured refinancing facilities through March 2028.
  • Facilities increased by AUD 5 million to support international expansion of Poco Vino.
  • AVG expects FY26 free Cash Flow excluding investments to remain neutral.
  • Second-half cash generation is projected to improve to positive AUD 20 million.
  • Poco Vino is now selling across more than 8,000 stores in over nine countries.
  • The company expects net Debt of approximately AUD 90 million by year-end.

Australian Vintage Ltd (ASX:AVG) shares moved sharply higher during the morning session on 27 May 2026, rising 20.69% to AUD 0.070 after the wine producer released an operational and refinancing update that highlighted improving cash flow trends, favourable second-half sales momentum and continued expansion of its innovation-led portfolio.

The update appeared to improve investor sentiment around the company’s turnaround strategy, particularly as management reaffirmed expectations for neutral underlying free cash flow in FY26 despite inflationary pressures and disruptions linked to the ongoing conflict involving Iran.

Australian Vintage, known for brands including McGuigan Wines, Tempus Two and Nepenthe, operates across wine production, distribution and exports in several global markets. The company has been focused on restructuring operations, improving Working Capital efficiency and expanding innovation-led product categories to support longer-term Earnings and cash flow stability.

Refinancing Extends Debt Maturity Profile

A key development announced by the company was the agreement of new finance facilities totalling AUD 128 million through to March 2028, with an option to extend the facilities for an additional year into 2029, subject to final documentation.

The refinancing package also includes an additional AUD 5 million Facility increase, aimed at supporting the global growth of Poco Vino, particularly its planned expansion in the United States during the second half of FY27.

Importantly, Australian Vintage noted that the revised financing arrangements were agreed broadly in line with existing Interest Rate settings, limiting additional financing pressure during a period of elevated global borrowing costs.

The refinancing announcement appears to have provided investors with greater confidence around the company’s Liquidity position and ability to continue executing its operational turnaround strategy over the coming years.

Cash Flow Position Shows Material Improvement

Cash flow performance remained a central focus of the update, with management reiterating that FY26 free cash flow excluding investments remains on track to be neutral.

According to the company, second-half cash generation is expected to improve to positive AUD 20 million, representing a substantial turnaround from negative AUD 9 million recorded in the prior corresponding period, excluding asset sales.

Australian Vintage also stated that underlying cash flow excluding investments and asset sales is expected to improve by approximately AUD 33 million compared to FY23.

The company expects full-year net debt to finish at around AUD 90 million, in line with previous guidance, while full-year net cash outflows of approximately AUD 15 million primarily reflect investments undertaken to support future growth initiatives.

Management described FY26 as a transformational year focused on demonstrating that operational recovery remains achievable, particularly through improved inventory management, tighter cost control and Investment into higher-growth categories.

Sales Momentum Builds Into Second Half

Australian Vintage reported improving sales trends during the second half, with the sales run rate currently tracking approximately 10% above first-half levels.

The company expects second-half Revenue growth of around 5% compared to the prior corresponding period, marking an improvement from the 2% decline recorded during the first half.

Management indicated that innovation-led products, stabilisation of core brands and returns from earlier investments were contributing to the improved sales trajectory.

However, the company also cautioned that more than 10% of annual sales are scheduled for shipment during the final month of the financial year, meaning shipping availability and container logistics remain important variables for reported FY26 sales performance.

Australian Vintage acknowledged that some shipments could potentially shift into FY27 due to disruptions associated with the Iran conflict, although management stressed that cash flow expectations are not considered at risk.

Poco Vino Continues International Expansion

One of the major contributors to recent growth has been Poco Vino, which the company described as a key innovation platform within its portfolio.

After just eight months in market, Poco Vino is now stocked in more than 8,000 stores across over nine countries.

The Brand is currently selling at a rate of approximately 500 bottles per hour, equivalent to roughly 12,000 bottles daily.

Australian Vintage also outlined plans to expand the Poco Vino range during FY27. The current portfolio of six still wines is expected to more than double with the addition of sparkling offerings including Moscato, Prosecco and flavoured spritz variants.

The company additionally plans to launch a premium “Atlas Series” range into global travel retail markets, targeting the premium wine segment with a recommended retail price of AUD 25.

Management indicated that these initiatives are expected to support an annualised sales run rate exceeding AUD 20 million as the Business moves into FY27.

The expansion of Poco Vino appears to be an important element of the company’s broader strategy to diversify beyond traditional wine categories and improve growth exposure across international markets.

Lemsecco and MadFish Add to Portfolio Growth

Alongside Poco Vino, Australian Vintage highlighted favourable momentum from several other brands within its portfolio.

Lemsecco, which has gained attention in flavoured sparkling wine categories, recorded scanning growth of 116% in Australia over the past year and has also expanded distribution into the United States and China.

The recently acquired MadFish brand also contributed positively following its integration into the business. According to the company, the brand delivered growth of 54% over the last 12 weeks compared with the same period a year earlier.

Australian Vintage noted that MadFish, together with its distribution agreement for Graham Norton wines in the United Kingdom, is contributing an annualised revenue run rate exceeding AUD 12 million.

New product ranging across retailers including Tesco, Waitrose and independent stores throughout the UK and Ireland has also supported recent sales growth.

McGuigan Performance and Market Trends

The company also provided an update on its core McGuigan brand, which continues to face pressure across certain commercial red wine categories globally.

In Australia, management stated that McGuigan is outperforming the broader market and several competitors, with volumes increasing 1% despite weakness in the wider red wine category.

Australian Vintage noted that total red wine sales within McGuigan’s price segment are down around 10% in Australia, while McGuigan volumes have remained broadly stable.

The company has also invested in a national Partnership with Cricket Australia in an effort to improve brand visibility and consumer engagement.

In the UK market, McGuigan performance was broadly in line with the wider Australian wine category, which remains affected by tax reforms and recycling-related cost changes impacting the broader wine industry.

Despite these conditions, McGuigan maintained its Leadership position in the UK zero-alcohol still wine category, recording growth of 7% over the past year.

Overall, Australian Vintage stated that its total UK wine Market Share remains stable at approximately 6%, while in Australia the company continues gaining market share, with sales scanning 4% higher compared with category growth of 0.7%.

Inventory Reduction and Operational Efficiency

Inventory management has remained another important priority for the business during FY26.

Australian Vintage stated that inventory levels are continuing to decline as part of efforts to improve working capital efficiency and support cash generation.

The company expects to finish FY26 with around 90 million litres of bulk wine inventory in storage, which management believes represents a balanced position aligned with future production requirements.

Alongside inventory reductions, the company has also undertaken cost-saving initiatives including Supply chain restructuring, Lease exits and workforce adjustments aimed at lowering fixed operating costs.

According to Australian Vintage, investments in operational efficiencies are expected to deliver payback within approximately one year.

Outlook Remains Focused on Turnaround Delivery

Looking ahead, management indicated that the company remains focused on delivering positive underlying cash flow and further reducing debt levels.

Australian Vintage expects the growth momentum seen during the second half to continue into FY27, supported by product innovation, international expansion and stabilisation of core brands.

The company also reiterated its target of achieving more than AUD 10 million in underlying cash flow excluding investments during FY27.

Management added that achieving positive group cash generation and lowering net debt would mark the first time the company has generated positive group cash flow since the COVID period in 2021.

Today’s share price reaction suggests investors responded favourably to the refinancing extension, improved second-half trading momentum and evidence of progress in the company’s broader turnaround strategy.