Winemaker forecasts loss as dollar soars 11Aug2
Oversupply another big problem
A strong New Zealand dollar blended with an oversupply of New Zealand wine, high levels of bulk wine sales and strong competition hit The New Zealand Wine Company’s bottom line.
The Blenheim-based winemaker, which produces Grove Mill, Sanctuary and Frog Haven wines, said in an earnings guidance on Friday that it expected an underlying loss before revaluations and income tax for the June 2011 year of up to $1.3 million.
NZWC’s sales volumes for the June 2011 year were 7 per cent lower than the year before at 174,000 cases, and revenue for the June 2011 year was expected to be 14 per cent down at $11.3m.
The company’s earnings forecast came as the kiwi hit a post-float high of US86.60 cents on Friday. “Clearly the US dollar and the British pound are problematic for us,” NZWC chairman Alton Jamieson said. “We don’t know what’s going to happen with the New Zealand dollar. The strength of the dollar and where it’s moved just over the last year, it’s concerning for everyone.” The company had some forward cover in place for the pound, but that would not last forever, he said.
NZWC exported similar volumes to each of its Australian, British and United States markets. Oversupply has been a problem for the industry since 2008. Currently, 30 per cent of the industry’s export sales were through bulk wine sales due to oversupply, and the industry needed to get demand and supply back into balance, Jamieson said.
There was not much the company could do to contend with the strong kiwi and oversupply issues.
“All you can do is get your costs down to be able to trade in the operating environment you are working in,” Jamieson said.
The company was focused on its restructuring and recovery plan for the 2012 year, he said. On June 27, NZWC warned the market that it would be in breach of its loan agreement with ANZ, which stipulates that its underlying earnings must be at least 1.3 times its interest costs.
The winemaker, which had revenues of more than $13m last year, said it would miss the condition by a “significant” margin.
ANZ has waived the breach on the condition of the independent review of NZWC’s forecasts and business model.
PricewaterhouseCoopers is conducting that review, which will include NZWC’s stake in Lineage Imports LLC, a Californian import and distribution business.
NZWC’s 66 per cent interest in Lineage has also squeezed the wine company’s wallet. Lineage incurred startup and operating costs resulting in a net earnings loss at June 30, 2011.
NZWC’s share of that loss was expected to be up to NZ$300,000.
Jamieson said the Lineage loss had not been unexpected, but the extent of the loss had surprised.
“With a startup company, you don’t know to a large extent exactly what the losses will be.
“We didn’t expect it to be this high.”
The company expected the PWC report within the next couple of weeks, he said. “The key thing for us is to get on and implement the restructuring and recovery plan.”
NZWC’s New Zealand IFRS fair value adjustments had not yet been finalised. They were expected to increase its full-year net loss after tax.
The total June 2011 full-year net loss after tax and the annual report will be released on September 1. The company’s directors have said they expect underlying earnings to improve next year.
Source: http://www.stuff.co.nz/marlborough-express/news/5335754/Winemaker-forecasts-loss-as-dollar-soars
Although wines are widely available in most Asian countries, especially in Hong Kong which has eliminated import tariff on wines altogether, the availability of fine vintage wines is still very scarce. Most wine merchants offer big names, young vintages and cheaper wines for everyday consumption. Wine lovers and connoisseurs looking for something special often travel to Clark Pampanga Philippines to do their shopping at this Wine Shop in Manila.
At Yats Wine Cellars we believe that a little bit of knowledge in wine goes a long way to developing expectations in the wines we choose to buy or drink. Without expectation, it is difficult to really enjoy wine to its fullest. With this in mind, efforts are made by Yats Wine Cellars to make it as easy and enjoyable as possible for our clients to learn more about wine.
Birthday wine gifts is one of the most popular birthday gifts to give someone living in the Philippines. Fine Vintage wine from Yats Wine Cellars is a sure winner and it does not have to cost a great deal to send someone a bottle in Philippines
To avail of wine catering service of Yats Wine Cellars, just contact this wine supplier in Manila or Angeles Clark Philippines for a meeting to design a theme for the event. The venue for a wine event can be in the privacy of a home, the convenience of an office in Manila for example or in a clubhouse of a subdivision. Wine glasses and accessories necessary for wine service are included in the wine catering service. Moreover, interesting wine notes accompany the wine to help participants enjoy the event even more by learning a little bit about wine while enjoying the party. A wine steward will be present to serve the wine.
There is also an exciting collection of white wine from Burgundy at this wine shop in Clark Pampanga such as Meursault, Chablis, Chassagne Montrachet, Puligny Montrachet, Corton-Charlemagne and St. Aubin. Red wines from Burgundy, Bordeaux and Rhone are also available with a good depth of back vintages too. Visitors buy wine in Manila and Pampanga should not miss stopping at this wine shop for a few bottles of fine vintage wines to bring home.
http://www.ClarkWineCenter.com
Getting to this wine shop in Pampanga Angeles City Clark Freeport Zone Philippines from Manila
Getting to the Clark Wine Center wine shop from Manila is quite simple: after entering Clark Freeport from Dau and Angeles City, proceed straight along the main highway M A Roxas. Clark Wine Center is the stand-along white building on the right, at the corner A Bonifacio Ave. From the Clark International Airport DMIA, ask the taxi to drive towards the entrance of Clark going to Angeles City. From Mimosa, just proceed towards the exit of Clark and this wine shop is on the opposite side of the main road M A Roxas.
Clark Wine Center
Bldg 6460 Clark Observatory Building
Manuel A. Roxas Highway corner A Bonifacio Ave,
Angeles Clark Freeport Zone, Pampanga 2023
0922-870-5173 0917-826-8790 (ask for Ana Fe)
YATS Wine Cellars
Manila Sales Office
3003C East Tower, Phil Stock Exchange Center,
Exchange Rd Ortigas Metro Manila, Philippines 1605
(632) 637-5019 0917-520-4393 ask for Rea or Chay
Best place to buy wine in Clark Pampanga outside Manila near Subic and Angeles City Philippines is Clark Wine Center.
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While in Clark, it might be a good idea to enjoy an evening of wine-and-dine in the fine dining Yats Restaurant and Wine Bar that features an award winning 2700-line wine list. It is located in Mimosa Leisure Estate of Clark Freeport Zone. For more information, visit http://www.YatsRestaurant.com
YATS Leisure Philippines is a developer and operator of clubs, resorts and high-class restaurants and wine shops in Clark Angeles Philippines http://www.yatsleisure.com
Looking for famous tourists spots, places to visit and see, relax and unwind in Clark, Pampanga, Philippines? You may want to check out these sites also:
http://www.HotelClarkPhilippines.com
http://www.ClarkPhilippines.com
http://www.YatsWineCellars.com
Yats Restaurant is the best restaurant for special dinner, best restaurant for dinner with friends near Manila, also the best place to celebrate special events.
Famous Restaurant in Pampanga, a place to dine with friends in Clark, cozy restaurant with a nice ambience, a nice function place for special occassions
www.YatsRestaurant.com
Where to go in Clark? Hotel Clark Philippines is a De Luxe Hotel in Clark and Subic, a risk free place to stay, cozy and nice ambience, a nice function place for special occassion
www.HotelClarkPhilippines.com
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