Australian Vintage is forecasting a “transformational year” in fiscal 2026 (FY26) following a slight sales decline and loss in FY25.

The owner of McGuigan and Tempus Two brands recorded a 1% sales decrease for the year ended 30 June, totalling A$257.1m ($166.7m).

In a statement on 21 August, Australian Vintage said: “A relentless focus on cash flow through cost-out measures has seen earnings and cash flow improvement in FY25, but still behind company targets.

“Despite this, improvements in earnings and cash flow were noted, though they remain below company targets.”

In FY25, earnings before interest, tax, depreciation, amortisation, and SGARA (EBITDAS) recovered to A$15.3m from a negative A$52.4m in 2024.

The net profit after tax and before SGARA (NPATS) showed a loss of A$5.9m, a significant improvement from a loss of A$86.1m in 2024.

For FY26, Australian Vintage aims for a 5% to 8% increase in sales, reversing previous declines and setting a positive free cash flow trajectory.

The company said early signs in July show “positive” consumer adoption in the UK for new brands Poco Vino and Lemsecco, with sales growth projections upgraded to A$15m and A$6m, respectively.

It plans to expand Poco Vino's distribution from Australia and the UK to New Zealand, Thailand, and Malaysia, along with Europe, the US, and the Middle East.

New product lines and manufacturing hubs in Amsterdam, Napa Valley, and Merbein are expected to “increase profitability and speed to market”.

Despite a 1% sales decline in FY25, Australian Vintage said it improved its market share in “key regions”, outperforming other Australian wine businesses in scale wine segments.

Its pillar brands contributed 78% of total revenue, with growth in Tempus Two, Nepenthe, and Barossa Valley Wine Company.

In FY26, growth is also anticipated in McGuigan and Not Guilty Zero alcohol wines, particularly in the UK, with planned expansion into Canada and the USA.

In FY25, Australian Vintage acquired international rights to the MadFish brand, excluding Australia, and secured distribution rights for Howard Park wines in the UK, Ireland, Europe, and Canada.

“Whilst the FY26 revenue from this [MadFish acquisition] exciting opportunity is small in the context of the overarching core portfolio” the company sees “significant potential for growth in FY27 and beyond”.

In terms of inventory levels, Australian Vintage said they increased by A$19m to A$220m in FY25 due to contracted wine intake and new product launches.

A reduction in inventory is expected in FY26 and FY27 as long-term grower contracts expire and strategic lease exits are completed.

Story Continues

Last month, Australian Vintage decided to end its lease for a vineyard located in Millewa, Victoria, three years before the agreed-upon end date.

Additionally, in May 2024, the company concluded a long-standing lease with the proprietors of the Balranald vineyard situated in New South Wales.

Two months later, the company proceeded to sell a vineyard in South Australia to The Randall Wine Group.

"Wine group Australian Vintage eyes sales recovery in new FY" was originally created and published by Just Drinks, a GlobalData owned brand.

The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site.

View Comments