Highlights

  • Australian Vintage (ASX:AVG) reported FY26 revenue of A$258 million, up A$1 million on the prior year.
  • Reported EBITDAS was a loss of A$35 million, including an A$27 million inventory impairment.
  • Net debt was A$89 million, below the guided A$90 million, and facilities were extended to A$128 million.
  • Underlying free cash flow was A$2 million, with second-half cash generation of A$21 million.

Australian Vintage Limited is a wine company whose brands include McGuigan, Poco Vino, Lemsecco and MadFish, with sales across Australia and the United Kingdom. The company reported its FY26 results in late August 2026, a year marked by a large inventory impairment, restructuring costs and a focus on cash generation and new product launches.

Company Business

McGuigan is the group's core brand, and the company describes it as the No. 1 zero-alcohol still wine globally. The portfolio has been widened with Poco Vino, Lemsecco and MadFish, the last of which was acquired during the year. Poco Vino sold more than 2.2 million units across six SKUs in FY26.

For Australian Vintage (ASX:AVG), the Australian and United Kingdom markets provide the regional split referred to in the results. Total group sales in Australia grew 3% in FY26, while McGuigan sales were flat. In the United Kingdom, McGuigan sales declined in line with the wine category, and the company maintained a stable 6% share of the UK wine market. Inventory is now about 90 million litres.

Recent Development

In August 2026, the company reported full-year results and said it extended its banking facilities to A$128 million through to March 2028, with an option to extend to 2029. The A$5 million increase carries interest rates in line with prior levels. Net debt ended the year at A$89 million, up A$14 million but below the guidance of less than A$90 million.

Australian Vintage (ASX:AVG) invested about A$16 million during FY26 in Poco Vino, Lemsecco, the MadFish acquisition, Invivo UK distribution and supply chain reductions. It reported a combined average post-tax internal rate of return of 69% on those investments. The company also said no assets were sold during the year.

Product launches are scheduled. Eight new Poco Vino SKUs are due in Australia and New Zealand in October 2026, with a premium Atlas Series to follow in February 2027 at a recommended retail price of A$20 per unit compared with A$7 for the core range. Lemsecco Australian scan sales rose 116%, and MadFish sales increased 25% over 26 weeks.

Financial Performance and Sector Context

FY26 revenue was A$258 million, compared with A$257 million. Reported EBITDAS was a loss of A$35 million versus a profit of A$15 million, and reported NPATS was a loss of A$64 million versus a loss of A$6 million. The result included an A$27 million inventory impairment, A$6 million of restructuring costs, A$4 million of lease exits, an A$3 million foreign exchange impact from the stronger Australian dollar and, below EBITDAS, an A$5 million tax loss write-off.

Operating cash flow was positive A$4 million compared with an outflow of A$8 million. Reported free cash flow was an outflow of A$14 million, while underlying free cash flow, which excludes A$16 million of one-off investments and restructuring, was positive A$2 million versus an outflow of A$13 million. Second-half cash generation of A$21 million was A$23 million ahead of the prior corresponding period.

The wine category remains subject to changing consumer preferences, and the company is extending its range through newer brands. Poco Vino net sales are projected to exceed A$20 million in FY27, and MadFish, together with a distribution agreement involving Graham Norton, is expected to contribute an annualised net sales run rate above A$12 million.

Risks to Consider

Australian Vintage (ASX:AVG) reported a net debt balance of A$89 million, so cash generation and the facility term to March 2028 remain relevant. Inventory of about 90 million litres creates valuation exposure, as the FY26 impairment showed. Other risks include currency movements, with a stronger Australian dollar affecting FY26, competition in the UK wine category, execution of new product launches and consumer demand shifts.

What to Watch Next

The launch of eight new Poco Vino SKUs in October 2026 and the Atlas Series in February 2027 are the dated operating milestones. For FY27, the company expects net positive cash generation for the full year, which it said would allow debt reduction for the first time in years, and forecasts no further material inventory impairments. Details of the annual general meeting and later reporting dates will be set out in future ASX notices.

Key Insights

Australian Vintage (ASX:AVG) enters FY27 after a loss-making year driven largely by impairments and restructuring, with improved second-half cash flow and extended banking facilities. Growth brands are being expanded alongside the McGuigan core. Monitoring points include progress on debt reduction, the Poco Vino and MadFish rollout, UK trading and inventory levels.