FFW Releases Half Year Result to 31 December 2017

Appendix 1 (NZAX Listing Rule 10.4.1)
Half Year Preliminary Announcement


Attachments:
Media Release
Half Yearly Report for the Six Months Ended 31 December 2017.

Foley Family Wines Limited (“FFW”)
Results for announcement to the market

Basis of Report Unaudited
Reporting Period 6 months to 31 December 2017
Previous Reporting Period 6 months to 31 December 2016

Amount (000s) Percentage change
Revenue from ordinary
activities
$NZ 20,111 21.1 %
Profit before revaluations
and income tax (“Operating
Earnings”)
$NZ 971 390.4 %
Operating profit before
interest, impairment,
revaluations, income tax and
depreciation (“Operating
EBITDA”)
$NZ 3,007 37.5 %
Reported Profit (loss) from
ordinary activities after tax
attributable to shareholders
(“Reported NPAT”)
$NZ 298

192.3 %

Profit/(loss) for the period net
of tax attributable to
shareholders
$NZ 298

192.3 %


Dividend Amount per security Imputed amount per security
Interim $NZ Nil $ Nil

Record Date N/A
Dividend Payment Date N/A

Current Reporting Period Prior Reporting Period
Net tangible assets per share $1.47 $1.42

Comments: 1. A full copy of the Half Yearly Report for the year ended
31 December 2017 is available on the FFW web site,
at: http://www.ffw.co.nz.

---

HALF YEARLY REPORT
FOR THE SIX MONTHS ENDED 31 DECEMBER 2017

1

HALF YEARLY REPORT
FOR THE SIX MONTHS ENDED 31 DECEMBER 2017

CONTENTS











PAGE


FINANCIAL STATEMENTS
INCOME STATEMENT 2
STATEMENT OF COMPREHENSIVE INCOME 3
STATEMENT OF CHANGES IN EQUITY 3
STATEMENT OF FINANCIAL POSITION 5
STATEMENTS OF CASH FLOWS 7
NOTES TO THE FINANCIAL STATEMENTS 8

COMPANY DIRECTORY 13

2

INCOME STATEMENT
FOR THE SIX MONTHS ENDED 31 DECEMBER 2017

Unaudited
6 Months
31 Dec 2017
Group
Audited
12 Months
30 Jun 2017
Group
Unaudited
6 Months
31 Dec 2016
Group
Note $’000 $’000 $’000
Revenue 3 20,111 37,821 16,601
Expenses
Cost of sales (15,098) (23,006) (12,088)
Selling, marketing and promotion expenses (2,005) (3,429) (1,644)
Administration and corporate governance expenses (1,194) (2,629) (1,102)
Non-recurring expenses (227) (2,647) (989)
Expenses excluding interest (18,524) (31,711) (15,823)
Profit before interest, impairment, revaluations and
income tax 1,587 6,110 778
Interest revenue - 9 3
Interest expense 4 (550) (1,135) (583)
Net finance costs (550) (1,126) (580)
Profit/(loss) before impairment, revaluations and
income tax 1,037 4,984 198
Impairment
Impairment of trade and other receivables - 1 -
Impairment of inventory (66) (6) -
Profit/(loss) before revaluations and income tax 971 4,979 198
Revaluation gains and losses
Unrealised gain/(loss) in fair value of financial asset/liabilities 9 (132) 196 (24)
Unrealised (loss)/gain on harvested grapes - 246 -
Realised reversal of (gain)/loss on harvested grapes (425) (1,330) (623)
Revaluation of property, plant & equipment - (108) -
Profit before income tax 3 414 3,983 (449)
Income tax expense (116) (927) 126
Profit for the period net of tax, attributable to
Shareholders of the Parent Company 298 3,056 (323)
Basic Earnings per share cps (after tax) 5 0.57 5.85 (0.62)
Diluted Earnings per share cps (after tax) 5 0.50 5.09 (0.54)

These financial statements should be read in conjunction with the Notes to the financial statements on pages 8 to 12.

3

STATEMENT OF COMPREHENSIVE INCOME
FOR THE SIX MONTHS ENDED 31 DECEMBER 2017

Unaudited
6 Months
31 Dec 2017
Group
Audited
12 Months
30 Jun 2017
Group
Unaudited
6 Months
31 Dec 2016
Group
Note $’000 $’000 $’000
Profit for the period 298 3,056 (323)
Other comprehensive income:
Items that will not be reclassified to profit or loss:
Revaluation of property, plant and equipment - 3,383 -
Income tax on items taken directly to or transferred from
equity - (657) -
Other comprehensive income for the period, net of
tax - 2,726 -
Total comprehensive income for the period, net of tax 298 5,782 (323)


STATEMENT OF CHANGES IN EQUITY
FOR THE SIX MONTHS ENDED 31 DECEMBER 2017

Fully Paid
Ordinary
Shares


Asset
Revaluation
Reserve
Retained
Earnings Total

Note
$’000 $’000 $’000 $’000
Unaudited 6 Months 31 December 2017 Group
Equity at 1 July 2017 66,518 10,202 14,424 91,144
Profit for the period - - 298 298
Other comprehensive income for the period - - - -
Total comprehensive income/(expense) for
the period - - 298 298
Distributions to owners 6 - - (1,567) (1,567)
Contributions by owners 7 - - - -
Transactions with owners during period - - (1,567) (1,567)
Added to equity during the period - - (1,269) (1,269)
Equity at 31 Dec 2017 66,518 10,202 13,155 89,875
Dividends paid per share cps 6 3.0

These financial statements should be read in conjunction with the Notes to the financial statements on pages 8 to 12.

4

STATEMENT OF CHANGES IN EQUITY
FOR THE SIX MONTHS ENDED 31 DECEMBER 2017 (CONTINUED)

Fully Paid
Ordinary
Shares


Asset
Revaluation
Reserve
Retained
Earnings Total

Note
$’000 $’000 $’000 $’000
Audited 12 Months 30 June 2017 Group
Equity at 1 July 2016 66,518 7,547 12,864 86,929
Profit for the period - - 3,056 3,056
Other comprehensive income for the period - 2,655 71 2,726
Total comprehensive income for the year - 2,655 3,127 5,782
Distribution to owners 6 - - (1,567) (1,567)
Contributions by owners 7 - - - -
Transactions with owners during year - - (1,567) (1,567)
Added to equity during the year - 2,655 1,560 4,215
Equity at 30 June 2017 66,518 10,202 14,424 91,144
Dividends paid per share cps 6 3.0

Unaudited 6 Months 31 December 2016 Group
(Restated)


Equity at 1 July 2016 66,518 7,547 12,864 86,929
Profit for the period - - (323) (323)
Other comprehensive income for the period - - - -
Total comprehensive income/(expense) for
the period - - (323) (323)
Distribution to owners 6 - - (1,567) (1,567)
Contributions by owners 7 - - - -
Transactions with owners during period - - (1,567) (1,567)
Added to equity during the period - - (1,890) (1,890)
Equity at 31 Dec 2016 66,518 7,547 10,974 85,039
Dividends paid per share cps 6 3.0

These financial statements should be read in conjunction with the Notes to the financial statements on pages 8 to 12.

5

STATEMENT OF FINANCIAL POSITION
AS AT 31 DECEMBER 2017

Unaudited
6 Months
31 Dec 2017
Group
Audited
12 Months
30 Jun 2017
Group
Restated
Unaudited
6 Months
31 Dec 2016
Group
Note $’000 $’000 $’000

CURRENT ASSETS
Cash and cash equivalents 1,589 263 3,883
Trade and other receivables 8,335 9,564 5,847
Other financial assets 34 182 -
Inventories 25,105 32,587 26,303
Biological work in progress 4,035 706 4,071
Current tax assets 424 - 579
Prepaid expenses 779 303 1,349
40,301 43,605 42,032

NON-CURRENT ASSETS
Property, plant and equipment 71,074 71,651 65,574
Intangible assets 13,053 13,053 13,053
Deferred tax assets 112 112 86
84,212 84,816 78,713

TOTAL ASSETS 124,513 128,421 120,745


These financial statements should be read in conjunction with the Notes to the financial statements on pages 8 to 12.

6

STATEMENT OF FINANCIAL POSITION
AS AT 31 DECEMBER 2017 (CONTINUED)

Unaudited
6 Months
31 Dec 2017
Group
Audited
12 Months
30 Jun 2017
Group
Restated
Unaudited
6 Months
31 Dec 2016
Group
Note $’000 $’000 $’000

CURRENT LIABILITIES
Trade and other payables 2,793 4,321 2,911
Loans and borrowings 1,000 1,001 1,000
Finance lease - - 6
Convertible notes 10,900 10,900 10,900
Current tax liabilities - 609 -
Other financial liabilities - - 25
14,693 16,831 14,842


NON-CURRENT LIABILITIES
Loans and borrowings 8,500 9,000 9,500
Other financial liabilities 35 51 65
Deferred tax liabilities 11,410 11,395 11,299
19,945 20,446 20,864

TOTAL LIABILITIES 34,638 37,277 35,706



EQUITY
Share capital 7 66,518 66,518 66,518
Reserves 10,202 10,202 7,547
Retained earnings 13,155 14,424 10,974
TOTAL EQUITY 89,875 91,144 85,039

TOTAL LIABILITIES AND EQUITY 124,513 128,421 120,745


These financial statements should be read in conjunction with the Notes to the financial statements on pages 8 to 12.

7

STATEMENT OF CASH FLOWS
FOR THE SIX MONTHS ENDED 31 DECEMBER 2017

Unaudited
6 Months
31 Dec 2017
Group
Audited
12 Months
30 Jun 2017
Group
Unaudited
6 Months
31 Dec 2016
Group
Note $’000 $’000 $’000
CASH FLOWS FROM OPERATING ACTIVITIES
Cash was provided from (applied to)
Receipts from customers 21,851 36,292 19,704
Insurance proceeds – earthquake related 994 1,965 -
Interest received - 9 3
Payments to suppliers and employees (16,951) (32,513) (14,072)
Interest and other costs of finance paid (550) (1,135) (583)
Income tax paid (1,134) (1,115) (663)
Net cash flow from operating activities 8 4,210 3,503 4,389
CASH FLOWS FROM INVESTING ACTIVITIES
Cash was provided from (applied to)
Sale of property, plant and equipment 5 69 4
Sale of property, plant and equipment – insurance proceeds –
earthquake related - 1,844 -
Purchase of property, plant and equipment and biological
assets – excluding earthquake related items (821) (1,718) (748)
Purchase of property, plant and equipment and biological
assets – earthquake related (3,168)
Net cash flow from investing activities (816) (2,973) (744)
CASH FLOW FROM FINANCING ACTIVITIES
Cash was provided for (applied to)
Dividends paid (1,567) (1,567) (1,567)
Loans repaid (501) (1,015) (510)
Net cash flow from financing activities (2,068) (2,582) (2,077)
Net increase (decrease) in cash held 1,326 (2,052) 1,568
Cash and cash equivalents/(Bank overdraft) at beginning of
period 263 2,315 2,315
Cash and cash equivalents/(Bank overdraft) at end of period 1,589 263 3,883
Comprising: Cash and cash equivalents 1,589 263 3,883
1,589 263 3,883


These financial statements should be read in conjunction with the Notes to the financial statements on pages 8 to 12.

8

NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 31 DECEMBER 2017
1. ACCOUNTING PERIOD

The unaudited financial statements presented are for Foley Family Wines Limited (“the Company”, “the Parent”)
and its subsidiaries (together referred to as “the Group”) and cover the six month period to 31 December 2017.
These condensed financial statements have been prepared in accordance with NZ IAS 34 Interim Financial
Statements and should be read in conjunction with Foley Family Wines Limited’s Annual Report for the year ended
30 June 2017. The financial statements were authorised for issue by the Directors on 27 February 2018.


2. ACCOUNTING POLICIES
The same accounting policies and methods of computation are followed in the interim financial statements as were
followed in the annual financial statements for the year ended 30 June 2017 with the exception of taxation.

Taxation
Income tax expense has been recorded in these financial statements on the basis of 28% of profit/(loss) before
income tax. Any deferred benefits have not been brought to account. This is consistent with the prior year.

There have been no changes in accounting policies during the period.



Unaudited
6 Months
31 Dec 2017
Group
Audited
12 Months
30 Jun 2017
Group
Unaudited
6 Months
31 Dec 2016
Group
$’000 $’000 $’000
3. PROFIT FOR THE PERIOD
Included in profit before income tax for the period are the following:
REVENUE:
Sales revenue – sale of goods – bottled wine 18,262 30,197 14,057
Sales revenue - other 1,849 2,950 2,544
Total sales revenue 20,111 33,147 16,601
Other revenue – insurance proceeds - 4,674 -
20,111 37,821 16,601
EXPENSES:
Bad debts (net of bad debts recovered) - - -
Depreciation 1,420 2,547 1,409
Directors’ fees 80 170 85
Employee benefits expense:
- Short-term employee benefits 2,964 6,745 2,896
Excise duty and ALAC levy 2,103 2,402 1,303
Fees paid to auditors (PwC):
- Audit of the financial statements (fees and disbursements) 36 66 36
Non-recurring expenses
- Earthquake related expenses - 2,647 989
- Mergers and acquisitions 227 - -

9

NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 31 DECEMBER 2017 (CONTINUED)

Unaudited
6 Months
31 Dec 2017
Group
Audited
12 Months
30 Jun 2017
Group
Unaudited
6 Months
31 Dec 2016
Group
$’000 $’000 $’000

4. INTEREST EXPENSE
Loan interest and other costs of finance paid 550 1,135 583

5. EARNINGS PER SHARE
Basic Earnings per share ($) 0.57 5.85 (0.62)

The calculation is based on NZIFRS earnings/(loss) of the Group of $298,000 (30Jun17 $3,056,000; 31Dec16
$(323,000)) and the weighted average of 52,222,534 ordinary shares on issue during the period (30Jun17
52,222,534; 31Dec16 52,222,534).
Diluted Earnings per share ($) 0.50 5.09 (0.54)

The calculation is based on NZIFRS earnings/(loss) of the Group of $298,000 (30Jun17 $3,056,000; 31Dec16
$(323,000)) and the weighted average of 60,085,559 ordinary shares on issue during the period (30Jun17
60,085,559; 31Dec16 60,085,559).
The weighted average number of ordinary shares for the purposes of diluted earnings per share reconciles to the
weighted average number of ordinary shares used in the calculation of basic earnings per share as follows:


31Dec2017
Number of
shares
30Jun2017
Number of
shares
31Dec2016
Number of
shares
Weighted average number of ordinary shares (Basic) 52,222,534 52,222,534 52,222,534
Convertible notes outstanding at period end 7,863,025 7,863,025 7,863,025
Weighted average number of ordinary shares (Diluted) 60,085,559 60,085,559 60,085,559


6. DIVIDENDS PAID PER SHARE
The calculation of dividends per share in respect of the interim 2018 period is based on the final dividend for 2017
paid in October totalling $1,567,000 (30Jun17: $1,567,000; 31Dec16 $1,567,000).


Unaudited
6 Months
31 Dec 2017
Group
Audited
12 Months
30 Jun 2017
Group
Unaudited
6 Months
31 Dec 2016
Group
$’000 $’000 $’000
7. SHARE CAPITAL
FULLY PAID UP ORDINARY SHARES
Balance at beginning of period 66,518 66,518 66,518
Movements in share capital - - -
Balance at end of period 66,518 66,518 66,518
Number of fully paid ordinary shares 52,222,534 52,222,534 52,222,534
There were no shares issued during the period (30Jun17 and 31Dec16: Nil).

10

NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 31 DECEMBER 2017 (CONTINUED)

Unaudited
6 Months
31 Dec 2017
Group
Audited
12 Months
30 Jun 2017
Group
Unaudited
6 Months
31 Dec 2016
Group
$’000 $’000 $’000

8. NET CASH FLOW FROM OPERATING ACTIVITIES
PROFIT AFTER INCOME TAX FOR THE PERIOD 298 3,056 (323)
NON-CASH ITEMS:
Depreciation 1,420 2,547 1,409
Increase/(decrease) in deferred tax 15 (586) 1
Impairment loss/(gain) recognised on trade and other receivables - (1) -
Impairment loss/(gain) recognised on inventories 66 6 -
Adjustments resulting from revaluation of grapes 425 1,084 623
(Gain)/loss on disposal of property, plant and equipment - (1,170) 541
(Gain)/loss on asset revaluations - 108 -
1,926 1,988 2,574
MOVEMENTS IN WORKING CAPITAL BALANCES:
Trade and other receivables 1,229 (1,842) 1,874
Inventories 6,991 (1,475) 5,277
Biological work in progress (3,329) (10) (3,375)
Prepaid expenses (476) 314 (732)
Trade and other payables (1,528) 1,271 (139)
Other financial assets/liabilities 132 (197) 24
Current tax assets/liabilities (1,033) 398 (791)
1,986 (1,541) 2,138
NET CASH FLOW FROM OPERATING ACTIVITIES 4,210 3,503 4,389


9. FINANCIAL INSTRUMENTS
Change in fair value of financial assets/liabilities consists of:
Foreign currency forward contracts (143) 154 (47)
Foreign currency option contracts (5) 6 -
Interest rate swaps 16 36 23
(132) 196 (24)

11

NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 31 DECEMBER 2017 (CONTINUED)

Unaudited
6 Months
31 Dec 2017
Group
Audited
12 Months
30 Jun 2017
Group
Unaudited
6 Months
31 Dec 2016
Group
$ $ $
10. NET TANGIBLE ASSETS
Net tangible assets per share 1.47 1.50 1.42



11. RELATED PARTY TRANSACTIONS

(a) Material transactions with related parties during the period are set out below:

(i) Sales were made to Foley Family Wines, Inc., a 100% owned subsidiary of Foley Family Wines Holdings,
Inc., the ultimate parent of Foley Family Wines Limited. Sales for the period were $2,009,000 for the
Group (Jun17: $7,312,000; Dec16: $2,760,000).

(ii) Marketing support services were provided by Foley Family Wines Inc., a 100% owned subsidiary of Foley
Family Wines Holdings, Inc., the ultimate parent of Foley Family Wines Limited. Marketing support
charges for the period were $53,000 for the Group (Jun17: $109,000; Dec16: $50,000).

(iii) Interest was paid/payable to Foley Family Wines Holdings, New Zealand Limited the parent of the Foley
Family Wines Limited under the convertible note. Interest paid/payable for the period was $357,000 for
the Group (Jun17: $709,000; Dec16: $357,000).

(iv) Sales were made to EuroVintage Limited, a 50% associate of the parent company of Foley Family Wines
Limited. Sales for the period were $6,902,000 for the Group (Jun17: $8,098,000; Dec16: $4,532,000).
Management fees and the funding of promotional activity such as bonus stock relating to these sales of
$766,000 were charged by EuroVintage during the period (Jun17: $773,000; Dec16: $424,000). Sales
from EuroVintage to the Group during the period totalled $4,000 (Jun17: $22,000; Dec16: $18,000).

(v) Sales were made to, and administration services provided to, Wharekauhau Country Estate Limited, a
luxury lodge 74.6% owned by Bill Foley, the majority shareholder of the ultimate parent. Sales for the
period totalled $16,000 for the Group (Jun17: $29,000; Dec16: $12,000). Administration Charges for the
period totalled $3,000 for the Group (Jun17: $5,000; Dec16 $2,000). Accommodation and function
facilities provided by Wharekauhau to the Company during the period totalled $15,000 (Jun17: $56,000;
Dec16: $11,000).

(vi) Lighthouse Gin was purchased for global distribution from Lighthouse Distillery Limited, a company
owned by Mark Turnbull, CEO and Director of Foley Family Wines Limited. Purchases during the period
totalled $134,000 (Jun17: $473,000; Dec16: $211,000). Administration services, rental, electricity and
contract distilling services were provided to Lighthouse Distillery Limited during the period of $21,000
(Jun17: $117,000; Dec16: $31,000).

12

NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 31 DECEMBER 2017 (CONTINUED)


Unaudited
6 Months
31 Dec 2017
Group
Audited
12 Months
30 Jun 2017
Group
Unaudited
6 Months
31 Dec 2016
Group
$’000 $’000 $’000

11. RELATED PARTY TRANSACTIONS (CONTINUED)

(b) Amounts owing to related parties at balance date:
Foley Family Wines Inc. 27 17 26
Foley Family Wines Holdings, New Zealand Limited – convertible note 10,900 10,900 10,900
EuroVintage Limited 205 77 134
Wharekauhau Country Estate Limited 5 - -
Lighthouse Distillery Limited 45 84 50

(c) Amounts owing from related parties at balance date:
Foley Family Wines Inc. 941 2,336 1,059
EuroVintage Limited 2,091 916 1,534
Wharekauhau Country Estate Limited 5 4 5
Lighthouse Distillery Limited 24 14 31



12. SUBSEQUENT EVENTS
No material events have occurred since balance date.



13. FOREIGN CURRENCY EXCHANGE RATES
The following spot foreign exchange rates have been applied at balance date:


31 Dec
2017
31 Dec
2017
30 June
2017
30 June
2017
31 Dec
2016
31 Dec
2016
NZ $1.00 =
FFW Buy FFW Sell FFW Buy FFW Sell FFW Buy FFW Sell
Australian dollar 0.9061 0.9117 0.9465 0.9525 0.9607 0.9679
United States dollar 0.7055 0.7109 0.7266 0.7320 0.6923 0.6983
Great British pound 0.5244 0.5286 0.5591 0.5634 0.5661 0.5709
Euro 0.5899 0.5947 0.6350 0.6402 0.6607 0.6667



14. SHAREHOLDER INFORMATION
August/September 2018 Annual Report Published
November 2018 Annual Shareholders Meeting

13

HALF YEARLY REPORT
FOR THE SIX MONTHS ENDED 31 DECEMBER 2017

DIRECTORS: WP Foley, II (Chairman)
AJ Anselmi
JA Jamieson (until 6 November 2017)
AM Turnbull (CEO)

HEAD OFFICE ADDRESS: 13 Waihopai Valley Road
RD 6, Blenheim 7276, Marlborough, New Zealand
Telephone +64 3 572 8200
Facsimile +64 3 572 8211

POSTAL ADDRESS: PO Box 67, Renwick 7243, Marlborough, New Zealand

EMAIL: info@ffw.co.nz

WEBSITES: www.ffw.co.nz (www.nzwineco.co.nz)
www.grovemill.co.nz
www.vavasour.com
www.tekairanga.com
www.martinborough-vineyard.co.nz

NATURE OF BUSINESS: Production and distribution of wine

AUDITORS: PricewaterhouseCoopers, Auckland

SOLICITORS: Bell Gully, Auckland

BANKERS: Bank of New Zealand, Auckland

REGISTRATION NO. 307139

REGISTERED OFFICE: 13 Waihopai Valley Road,
RD 6 Blenheim 7276, Marlborough, New Zealand

SHARE REGISTRAR: Computershare Investor Services Limited
Level 2, 159 Hurstmere Road, Takapuna, Auckland
Private Bag 92119, Auckland 1020
Telephone +64 9 488 8777
Facsimile +64 9 488 8787
Email: enquiry@computershare.co.nz (please quote
CSN or shareholder number)
Website for shareholders to change address or payment
instructions or view investment portfolio:
www.computershare.co.nz/investorcentre

SHARE TRADING: NZX – NZAX Market
Security Code “FFW”

---

NZAX Release

27 February 2018
For Immediate Release

Foley Family Wines Releases Half Year Result to 31 December 2017

Highlights

Revenue $20.1 million – up 21%
Case sales of bottled wine 222,000 – up 24%
Sales revenue from bottled wine $18.3 million – up 30%
Operating EBITDA $3 million – up 38%


Mark Turnbull, Chief Executive Officer of Foley Family Wines Limited (FFW) announced today that
the company’s unaudited half year result for the six months ended 31 December 2017 was a profit
after tax of $298,000 compared with a loss of $323,000 for the same period last year.

Underlying earnings of $971,000 was $773,000 higher than the same period last year. The current
period was impacted by non-recurring legal costs of $227,000 in relation to the proposed Mt
Difficulty acquisition and the prior period was impacted by non-recurring earthquake related
expenses of $989,000 in relation to the losses incurred as a result of the significant damage sustained
at the Grove Mill Winery in the Culverden earthquake on 14 November 2016.

Sales Revenue from bottled wine for the 31 December 2017 half year was up $4,205,000 (30%) on the
same period last year. Case sales were up 43,000 dozen (24%) from last year to 222,000 with the
major increases being achieved in the Australian, New Zealand and China markets.

Cash on hand of $1,589,000 reflects strong operating cashflow of $4,210,000 in the period. Further,
the company has paid a dividend of $1,567,000 and reduced bank debt by $501,000 during the
period.

Mark Turnbull, CEO said “The last six months have been an exceptional period in terms of wine
accolades with 8 trophies and 26 Gold medals. These accolades lead to a significant increase in sales
for the Dashwood range on wines. Our challenge moving forward is to ensure we capture more value
for the quality of our wines we produce.”

“What’s pleasing is that we now are seeing genuine interest in our high quality portfolio from around
the world. Once the Mt Difficultly purchase is completed, we will have the ability to satisfy the
portfolio needs of any customer around the world requiring high quality New Zealand wine.”


Authorised for public release.


For further information please contact:
Mark Turnbull
CEO, Foley Family Wines Limited
PO Box 67, Renwick, 7243, Marlborough
Tel: +64 21 714 885
Email: mark@ffw.co.nz