Foley Wines Limited Half Yearly Report to 31 December 2020

Results announcement

Results for announcement to the market
Name of issuer Foley Wines Limited
Reporting Period 6 months to 31 December 2020 (Unaudited)
Previous Reporting Period 6 months to 31 December 2019 (Unaudited)
Currency NZD

Amount (000s) Percentage change
Revenue from continuing
operations
$28,256 -2.3%
Total Revenue $28,293 -2.2%
Net profit/(loss) from continuing
operations
$2,566 -5.8%
Total net profit/(loss) $2,566 -5.8%
Interim/Final Dividend
Amount per Quoted Equity
Security
$ 0.00000000
Imputed amount per Quoted
Equity Security
$ 0.00000000
Record Date N/A
Dividend Payment Date N/A
Current period Prior comparable period
Net tangible assets per Quoted
Equity Security
$1.38 $1.26
A brief explanation of any of the
figures above necessary to
enable the figures to be
understood
Other Key Metrics:
Operating Profit before revaluations and income tax
(“Operating Earnings”) $3,564 -8.7%
Operating Profit before interest, impairment, revaluations,
income tax, depreciation and amortisation (“Operating
EBITDA”) $7,131 -5.1%
This announcement should be read in conjunction with the
attached unaudited Financial Statements for the Six Months
ended 31 December 2020. A copy of the Half Yearly Report
December 2020 can also be found on the FWL web site
www.foleywines.co.nz.
Authority for this announcement
Name of person

authorised to
make this announcement
Jane Trought - CFO
Contact person for this
announcement
Mark Turnbull - CEO
Contact phone number +64 21 714 885
Contact email address mark@foleywines.co.nz
Date of release through MAP

24 February 2021

Unaudited financial statements accompany this announcement.

---

KEEPING THE COURSE

WEDNESDAY, FEBRUARY 24 2021 – Foley Wines Limited today announced a 5.8 % decrease in reported
after tax profit of $2,566,000.

Ongoing impacts of the global pandemic impacted the key channels of restaurants, hotels and airlines for its
premium brands, with total cases sales down 7 % to 281,000. Compounding the situation was logistic issues which
meant long delays to shipping products around the world, without these delays, the company believes case sales
would have been much closer to last year’s volume.

New Zealand performed well notwithstanding the challenges of Covid-19 with case sales up 8 % to 92,000. The
key December period in particular was a standout with Foley Wines’ brands growing 14% compared with a 3.2%
decline in the still wine category. The New Zealand market is responding positively to the company’s
sustainability practices, particularly around using New Zealand recycled glass along with the latest initiative using
labels made from a sugar cane which is a highly renewable material.

Last year during lock down the company announced that it would be building a new purpose-built wine barrel
facility, distillery for Lighthouse, tasting room and restaurant in Martinborough. This project is progressing well
with the barrel facility on track for completion in March and the restaurant is on track for this summer. The
company believes that this investment is critical in continuing to develop its Martinborough brands’ into
household names over time.

Mark Turnbull, Foley Wines CEO said “while the last 9 months has been challenging, we are committed to our
strategy of building brands that satisfy the needs of discerning retailers and restaurants around the world. We
believe building brands is the best way to create long term value for our shareholders, our growers and the broader
New Zealand economy. In the past year we have secured some strong new routes to market for our premium
portfolio, which under pins the quality of our portfolio as well as reinforcing the appeal of our rather unique
business model here in New Zealand”.
– END –

Authorised for public release.

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


Notes to Editors:

Foley Wines is a collection of iconic wineries and brands from New Zealand’s most acclaimed wine regions.
Each with a unique story of New Zealand to tell, our wineries are linked by a common unrelenting purpose; to
make great wine that people love to drink around the world – made by land & hand.

Our ambition is to be New Zealand’s most revered wine group through the ownership of iconic wineries in New
Zealand’s most acclaimed regions, inspiring the most discerning retailers and restaurants around the world.

Established in 1988 as Grove Mill Wine Company Ltd, the company merged with Foley Family Wines NZ
Limited in September 2012. The Company listed on the NZAX Board of the NZ Stock Exchange when this was
first established in November 2003 and migrated to the NZX Main Board and changed its name to Foley Wines
Limited (ticker code FWL) on 3 December 2018.

Foley Wines’ major shareholder is Bill Foley who is a major investor in the US wine industry. His company Foley
Family Inc. is a Top 20 wine company in the US, owning 17 wineries with over 150 dedicated sales personnel in
the US market.

Foley Wines wholly owns Martinborough Vineyard and Te Kairanga and the Lighthouse Gin brand in
Martinborough, Grove Mill and Vavasour in Marlborough, and Mt Difficulty in Central Otago.

---

HALF YEARLY REPORT
For the six months ended 31 December 2020

Performance Overview 4
Chief Executive Officer (CEO) and Directors Report 6 – 10
Financial Statements (Unaudited)
Income Statement 13
Statement of Comprehensive Income 14
Statement of Changes In Equity 14 – 15
Statement of Financial Position 16 – 17
Statement of Cash Flows 18
Notes to the Financial Statements 20 – 28
Company Directory 29
This interim financial report does not include all of the notes of the type normally included in the annual financial report.
Accordingly, this report should be read in conjunction with the Annual Report for the year ended 30 June 2020 and
any public announcements made by Foley Wines Limited during the interim period.
Foley Wines Limited is a company incorporated and domiciled in New Zealand and listed on the NZSX Board of the
New Zealand Stock Exchange (NZX). The Company is an integrated wine company producing table wines with the
marketing and sales of premium wines in New Zealand and various export markets.
These financial statements that were approved for issue on 24 February 2021 and have not been audited.
Contents
FOLEY WINES LIMITEDFOLEY WINES LIMITED | HALF YEARLY REPORT 2021
1

made by
land &
hand
Foley Wines is a collection of iconic
wineries and brands from New Zealand’s
most acclaimed wine regions
Each with a unique story of New Zealand to tell, our
wineries and distillery are linked by a common
unrelenting purpose; to make great wine that people
love to drink around the world – made by land & hand.
FOLEY WINES LIMITEDFOLEY WINES LIMITED | HALF YEARLY REPORT 2021
2

Our wineries
& distillery
Martinborough Vineyard
Martinborough
Te Kairanga
Martinborough
Lighthouse Gin
Martinborough
Grove Mill
Wairau Valley, Marlborough
Vavasour
Awatere Valley, Marlborough
Mt Difficulty
Central Otago
FOLEY WINES LIMITEDFOLEY WINES LIMITED | HALF YEARLY REPORT 2021
3

Performance
Overview
CASE SALES 281,000 (down 7%)
DOMESTIC CASES 92,000 (up 8%)
BOTTLED SALES REVENUE $26,235,000 (down 5.1%)
OPERATING EARNINGS $3,564,000 (down 8.7%)
REPORTED PROFIT AFTER TAX $2,566,000 (down 5.8%)
OPERATING EBITDA $7,131,000 (down 5.1%)
FOLEY WINES LIMITEDFOLEY WINES LIMITED | HALF YEARLY REPORT 2021
4

Mark Turnbull, CEO and Director
On behalf of the Board of Directors of Foley Wines Limited (FWL) I am pleased to
present its operating and financial results for the six months ended 31 December 2020.
OPERATING PERFORMANCE
The operating profit before revaluations and income tax (“operating earnings”) for the
six months was $3,564,000 compared with $3,904,000 for the previous financial year.
As outlined previously, we are of the firm belief that operating performance (underlying
profit) is the key metric to demonstrate the progress the Company is making due to the
complexity around the accounting standards and fair value adjustments.
Profit for the period net of tax attributable for the shareholders was $2,566,000, down
5.8% compared with $2,723,000 the previous year.
New Zealand is a key market for our brands, and we have performed very well. Industry
data shows the volume in New Zealand declined 0.1% in volume for the 12 months ended
November, whereas our portfolio grew by 20%. Furthermore, the still wine category
declined by 3.1% in December, where our brands grew by 14%.
Globally, NZ Wine Growers has stated that export revenue has grown by 8% for
12 months ended November, packaged wine was down by 3% however bulk wine was up
33%. This spike in bulk is clearly driven by growth in retail as a direct result of lockdowns
in Countries such as UK and Australia.
The portfolio of wines we produce are premium brands, which have a strong emphasis on
hospitality, airlines and cruise lines. These sectors have been some of the hardest hit from
Covid-19. This has made trading very volatile; we saw a rebound in the UK initially in
hospitality and then with subsequent resurgence, these channels were shut back down. In
Australia, post lock down we saw hospitality rebound to a certain degree and like the UK,
subsequent lockdowns subdued these channels.
CEO & Directors’
Report
FOLEY WINES LIMITEDFOLEY WINES LIMITED | CEO AND DIRECTORS’ REPORT
6

Bottled case sales
BOTTLED CASE SALES 6 MONTHS TO DECEMBER 2020
NEW ZEALAND 92,000 CASES +8%
AUSTRALIA 71,000 CASES (18%)
USA/CANADA 51,000 CASES (22%)
UK/EUROPE 52,000 CASES (4%)
REST OF WORLD 15,000 CASES +25%
TOTAL 281,000 CASES (7%)
FOLEY WINES LIMITEDFOLEY WINES LIMITED | CEO AND DIRECTORS’ REPORT
7

OPERATING PERFORMANCE continued
It was well publicized that there were shipping and logistics issues leading up to Christmas.
Like many exporters we were affected with some delays of up to 8 weeks. These delays
impacted sales for the six-month period, these would have been much closer to last year’s
case sales for the six months if all orders were shipped. No orders were lost, merely this is
a timing issue. The good news is in recent times these delays are being reduced.
The case sales by market below shows that the USA has been hard hit by Covid-19, this
is because many of our brands in this market are hospitality orientated. Australia was
impacted significantly from a combination of shipping delays and phasing of promotional
activity along with hospitality impacts. In 2020 we moved into a direct relationship with
a major Australian retailer for a number of our high value brands. Covid-19 meant some
delay in terms of execution of this new relationship, however ranging and promotional
activity is now rolling out. We expect that this will create significant value for our premium
portfolio with new ranging already secured for mid-year. This new relationship is a perfect
example of us executing a portfolio solution for a major retail group. We believe this is
a key competitive advantage of our portfolio. In the six months we also secured a direct
relationship with a large UK supermarket group for our Grove Mill and Vavasour brands.
Both of these are part of the Fine Wines of New Zealand programme and are two of our
most important brands. The wines have been shipped and are due to be on shelves in the
coming months.
Nothwistanding the head winds faced from Covid-19, the company remains focused on
implementing its previously stated strategy (essentially focusing on value versus volume),
namely:
• Growing brands at higher price points
• Seeking distribution in markets where our brands are not represented
• Improving distribution arrangements where our brands are represented
We believe this is the best way to create value for our shareholders and also for our
growers and the broader New Zealand economy.
FOLEY WINES LIMITEDFOLEY WINES LIMITED | CEO AND DIRECTORS’ REPORT
8

SUSTAINABILITY
The company continues to look at new ways to look after our environment. For many years
we have been using New Zealand recycled glass rather than Chinese imported glass, solar
energy on our wineries and invested in wastewater management. In the last six months we
have begun using labels made from sugar cane on our Dashwood and Grove Mill. This is
a highly renewable material that utilizes an abundant by-product.
CASHFLOW
Operating cash flow was $1,987,000 for the six months, down from $4,346,000 the
previous year. This year’s cashflow was influenced by the decline in sales and shipping
delays due to Covid-19, the phasing of sales and higher income tax paid of $2,488,000 (vs
$1,512,000 in the prior year).
Capital expenditure was $2,362,000 for the six months, compared with $2,314,000 the
previous year. A key item of expenditure in the current year is The Old Winery Cellar
Door and Restaurant development at the Te Kairanga winery. We are really excited with
this development, with the first stage (an underground barrel facility) due to be completed
in March. We hope to have the Distillery completed by the end of September and by
end of November have the cellar door and restaurant open for Summer. We have had
overwhelmingly positive feedback on the development, and we believe it will transform
all our Martinborough brands into household names over time.
The total dividend paid during the six months was $1,972,000, the same as the previous
yea r.
LIGHTHOUSE GIN
Lighthouse Gin continues to be a small but important part of the business. Sales were 6,490
4.2 Litre case equivalents (equivalent to approximately 38,940 700ml bottles) compared
with 3,384 cases (equivalent to approximately 20,304 700ml bottles) in same period in the
prior year.
Lighthouse continues to go from strength to strength in Australia with sales up 125%. This
is proving to be a hugely successful product for our key retail partner in that market.
FOLEY WINES LIMITEDFOLEY WINES LIMITED | CEO AND DIRECTORS’ REPORT
9

LIGHTHOUSE GIN continued
New routes to market in Asia have been secured in the last 12 months by securing a major
retail customer. The company sees this as a new and important market but will take some
time to build.
The Company continues to be very optimistic that this growth will continue in the year
ahead and capacity will increase when the new purpose-designed distillery is completed
later this year.
2021 HARVEST
The early indication is that the 2021 harvest is expected to be lower than last year due to
poor weather conditions during flowering in the two major regions along with some frosts
in Spring. This will constrain supply but should be the catalyst for the industry to increase
pricing. We will certainly be reviewing our pricing for the year ahead.
OUTLOOK
Over the course of the past two years the Company has demonstrated that it is gaining
momentum with its premiumisation strategy. There have been some major improvements
in our global distribution as well as significant gains in the New Zealand market. However,
the world is in extremely uncertain times due to Covid-19, volatility of exchange rates and
weather affecting this year’s vintage, meaning the ability to give guidance is extremely
difficult.
The Company has laid a strong foundation for growth to take advantage of opportunities
as they arise and will continue to focus on brand building and developing new routes to
market at the premium price points.
For and on behalf of the Board of Directors
Mark Turnbull
CEO and Director
FOLEY WINES LIMITEDFOLEY WINES LIMITED | CEO AND DIRECTORS’ REPORT
10

FOLEY WINES LIMITEDFOLEY WINES LIMITED | HALF YEARLY REPORT 2021
Financial Statements
12

Income
Statement
For the six months ended 31 December 2020




Note
Unaudited
6 Months
31 Dec 2020
Group
$’000
Audited
12 M o n t h s
30 Jun 2020
Group
$’000
Unaudited
6 Months
31 Dec 2019
Group
$’000
Revenue 3 28,293 55,856 28,931
Expenses
Cost of sales (18,775) (35,911) (18,867)
Selling, marketing and promotion expenses (3,208) (5,985) (3,276)
Administration and corporate governance expenses (1,936) (4,222) (1,901)
Other expenses 3 (37) (144) –
Expenses excluding interest (23,956) (46,262) (24,044)
Profit before interest, impairment, revaluations
and income tax 4,337 9,594 4,887
Interest revenue – 3 1
Interest expense 4 (762) (1,829) (972)
Net finance costs (762) (1,826) (971)
Profit before impairment, revaluations and income tax 3,575 7,768 3,916
Impairment
Impairment of inventory (11) (18) (12)
Profit before revaluations and income tax 3,564 7,750 3,904
Revaluation gains and losses
Unrealised gain in fair value of financial assets/liabilities 9 435 12 195
Unrealised gain on harvested grapes – 1,243 –
Realised reversal of gain on harvested grapes (436) (594) (318)
Revaluation of property, plant & equipment – (818) –
Profit before income tax 3 3,563 7,593 3,781
Income tax expense (997) (2,191) (1,058)
Income tax benefit – re-introduction of tax depreciation on buildings – 1,519 –
Profit for the period net of tax, attributable
to Shareholders of the Parent Company 2,566 6,921 2,723
Basic Earnings per share cps (after tax) 5 3.90 10.53 4.14
Diluted Earnings per share cps (after tax) 5 3.84 10.10 4.05
These financial statements should be read in conjunction with the Notes to the Financial Statements on pages 21 to 28.
FOLEY WINES LIMITEDFOLEY WINES LIMITED | HALF YEARLY REPORT 2021
13

Statement of Comprehensive
Income
For the six months ended 31 December 2020




Unaudited
6 Months
31 Dec 2020
Group
$’000
Audited
12 M o n t h s
30 Jun 2020
Group
$’000
Unaudited
6 Months
31 Dec 2019
Group
$’000
Profit for the period 2,566 6,921 2,723
Other comprehensive income:
Items that will not be reclassified to profit or loss:
Revaluation of property, plant and equipment – 2,888 –
Income tax on items taken directly to or transferred from equity – (334) –
Other comprehensive income for the period, net of tax – 2,554 –
Total comprehensive income for the period, net of tax 2,566 9,475 2,723
These financial statements should be read in conjunction with the Notes to the Financial Statements on pages 21 to 28.
Note
Fully Paid
Ordinary
Shares
$‘000
Asset
Revaluation
Reserve
$’000
Retained
Earnings
$’000
Total
$’000
Unaudited 6 Months 31 December 2020 Group
Equity at 1 July 2020 86,518 18,528 20,463 125,509
Profit for the period – – 2,566 2,566
Total comprehensive income for the period – – 2,566 2,566
Distributions to owners 6 – – (1,972) (1,972)
Transactions with owners during period – – (1,972) (1,972)
Added to equity during the period – – 594 594
Equity at 31 December 2020 86,518 18,528 21,057 126,103
Dividends paid per share cps 6 3.0

For the six months ended 31 December 2020
Statement of
Changes in Equity
FOLEY WINES LIMITEDFOLEY WINES LIMITED | HALF YEARLY REPORT 2021
14

Statement of
Changes in Equity
(continued)
For the six months ended 31 December 2020
Note
Fully Paid
Ordinary
Shares
$‘000
Asset
Revaluation
Reserve
$’000
Retained
Earnings
$’000
Total
$’000
Audited 12 Months 30 June 2020 Group
Equity at 1 July 2019 86 , 518 16 ,0 0 9 16 , 78 0 119, 307
Adjustment on initial application of NZ IFRS 16 – (2) (1,299) (1,301)
Adjusted balance at 1 July 2019 86,518 16,007 15,481 118,006
Profit for the period – – 6,921 6,921
Other comprehensive income for the period – 2,521 33 2,554
Total comprehensive income for the year – 2,521 6,954 9,475
Distributions to owners 6 – – (1,972) (1,972)
Transactions with owners during year – – (1,972) (1,972)
Added to equity during the year – 2,521 4,982 7,503
Equity at 30 June 2020 86,518 18,528 20,463 125,509
Dividends paid per share cps 6 3.0

Unaudited 6 Months 31 December 2019 Group
Equity at 1 July 2019 86 , 518 16 ,0 0 9 16 , 78 0 119, 307
Adjustment on initial application of NZ IFRS 16 – (2) (1,805) (1,807)
Rounding adjustment – – (1) (1)
Adjusted balance at 1 July 2019 86,518 16,007 14,974 117,499
Profit for the period – – 2,723 2,723
Total comprehensive income for the period – – 2,723 2,723
Distributions to owners 6 – – (1,972) (1,972)
Transactions with owners during period – – (1,972) (1,972)
Added to equity during the period – – 751 751
Equity at 31 December 2019 86,518 16,007 15,725 118,250
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 21 to 28.
FOLEY WINES LIMITEDFOLEY WINES LIMITED | HALF YEARLY REPORT 2021
15

Statement of
Financial Position
As at 31 December 2020





Unaudited
6 Months
31 Dec 2020
Group
$’000
Audited
12 M o n t h s
30 Jun 2020
Group
$’000
Unaudited
6 Months
31 Dec 2019
Group
$’000
CURRENT ASSETS
Cash and cash equivalents 1,963 5,921 3,693
Trade and other receivables 8,275 7,576 9,323
Other financial assets 438 110 285
Inventories 39,021 46,721 35,457
Biological work in progress 6,713 1,511 6,614
Prepaid expenses 1,303 406 1,133
Other current assets – 431 –
57,713 62,676 56,505

NON-CURRENT ASSETS
Property, plant and equipment 102,573 102,515 100,816
Right-of-use assets 11,150 11,466 11,971
Intangible assets 35,122 35,122 35,121
148,94 4 149,103 147,908
TOTAL ASSETS 206,657 211,779 204,413
These financial statements should be read in conjunction with the Notes to the Financial Statements on pages 21 to 28.
FOLEY WINES LIMITEDFOLEY WINES LIMITED | HALF YEARLY REPORT 2021
16

Statement of
Financial Position
(continued)
As at 31 December 2020




Note
Unaudited
6 Months
31 Dec 2020
Group
$’000
Audited
12 M o n t h s
30 Jun 2020
Group
$’000
Unaudited
6 Months
31 Dec 2019
Group
$’000
CURRENT LIABILITIES

Trade and other payables 4,044 6,786 3,687
Loans and borrowings 2,132 7,353 13,949
Lease liabilities 894 896 896
Convertible notes 10,900 10,900 10,900
Current tax liabilities 169 1,662 629
18,139 27,597 30,061

NON–CURRENT LIABILITIES
Loans and borrowings 35,500 31,500 26,500
Lease liabilities 11,690 11,943 12,393
Other financial liabilities – 8 –
Deferred tax liabilities 15,225 15,222 17,209
62,415 58,673 56,102
TOTAL LIABILITIES 80,554 86,270 86,163

EQUITY
Share capital 7 86,518 86,518 86,518
Reserves 18,528 18,528 16,007
Retained earnings 21,057 20,463 15,725
TOTAL EQUITY 126,103 125,509 118,250
TOTAL LIABILITIES AND EQUITY 206,657 211,779 204,413
These financial statements should be read in conjunction with the Notes to the Financial Statements on pages 21 to 28.
FOLEY WINES LIMITEDFOLEY WINES LIMITED | HALF YEARLY REPORT 2021
17

Statement of
Cash Flows
For the six months ended 31 December 2020




Note
Unaudited
6 Months
31 Dec 2020
Group
$’000
Audited
12 M o n t h s
30 Jun 2020
Group
$’000
Unaudited
6 Months
31 Dec 2019
Group
$’000
CASH FLOWS FROM OPERATING ACTIVITIES
Cash was provided from (applied to)
Receipts from customers 29,637 60,628 30,812
Government grants/assistance – 638 –
Interest received – 3 1
Payments to suppliers and employees (24,400) (46,838) (23,983)
Interest and other costs of finance paid (762) (1,730) (972)
Income tax paid (2, 488) (1,9 0 9) (1, 512)
Net cash flow from operating activities 8 1,987 10,792 4,346

CASH FLOWS FROM INVESTING ACTIVITIES
Cash was provided from (applied to)
Sale of property, plant and equipment 56 74 43
Purchase of property, plant and equipment (2,362) (4,417) (2,314)
Net cash flow from investing activities (2,306) (4,343) (2,271)

CASH FLOW FROM FINANCING ACTIVITIES
Cash was provided for (applied to)
Dividends paid (1,972) (1,972) (1,972)
Loans advanced 5,000 1,000 1,185
Loans repaid (6,221) (2,108) (598)
Lease liabilities repaid (446) (893) (442)
Net cash flow from financing activities (3,639) (3,973) (1,827)
Net increase in cash held (3,958) 2,476 248
Cash and cash equivalents at beginning of period 5,921 3,445 3,445
Cash and cash equivalents at end of period 1,963 5,921 3,693
Comprising: Cash and cash equivalents 1,963 5,921 3,693
These financial statements should be read in conjunction with the Notes to the Financial Statements on pages 21 to 28.
FOLEY WINES LIMITEDFOLEY WINES LIMITED | HALF YEARLY REPORT 2021
18

AWARDED GOLD
IN LONDON
LONDON DRY GIN
PERFECTED IN MARTINBOROUGH

FOLEY WINES LIMITEDFOLEY WINES LIMITED | HALF YEARLY REPORT 2021
Notes to Financial Statements
20

1. ACCOUNTING PERIOD
The unaudited financial statements presented are for Foley Wines Limited (“the Company”, “the Parent”) and its subsidiaries
(together referred to as “the Group”) and cover the six month period to 31 December 2020. These condensed financial
statements have been prepared in accordance with NZ IAS 34 Interim Financial Statements and should be read in conjunction
with Foley Wines Limited’s Annual Report for the year ended 30 June 2020. The financial statements were authorised for issue
by the Directors on 24 February 2021.
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 2020 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.
2.1 JUDGEMENTS, ESTIMATES AND ASSUMPTIONS
In preparing these interim financial statements under NZ IFRS the Directors are required to make judgements, estimates and
assumptions about carrying values of assets and liabilities that are not readily apparent from other sources. The estimates and
associated assumptions are based on historical experience and various other factors that are believed to be reasonable under
the circumstance, the results of which form the basis of making the judgements. Actual results may differ from these estimates.
The significant areas of estimation, assumptions and critical judgements made in the preparation of these financial statements
are consistent with those set out in the 2020 Annual Report.
Notes to the
Financial Statements
For the six months ended 31 December 2020
FOLEY WINES LIMITEDFOLEY WINES LIMITED | HALF YEARLY REPORT 2021
21

Notes to the
Financial Statements
(continued)
For the six months ended 31 December 2020




Unaudited
6 Months
31 Dec 2020
Group
$’000
Audited
12 M o n t h s
30 Jun 2020
Group
$’000
Unaudited
6 Months
31 Dec 2019
Group
$’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 26,235 49,951 27,640
Sales revenue – other 2,021 5,214 1,291
Total sales revenue 28,256 55,165 28,931
Other revenue – government grant (refer note 4 2020 Annual Report) 37 601 –
Other revenue – dividend received – 90 –
28,293 55,856 28,931
Included in profit before income tax for the period are the following:
EXPENSES:
Amortisation – lease right-of-use assets 507 1,009 504
Depreciation 2,287 4,560 2,127
Directors’ fees 120 232 120
Employee benefits expense: Short-term employee benefits 3,879 9,239 3,810
Excise duty and HPA levy 2,873 4,600 2,482
Fees paid to auditors (Deloitte/PwC):
– Audit of the financial statements (fees and disbursements) – 86 –
– Other services (PwC) – 3 –
Other expenses:
– Acquisition and compliance expenses 28 – –
– Covid-19 related expenses 9 144 –

4. INTEREST EXPENSE

Interest on loans and borrowings 404 1,015 612
Interest on convertible notes 357 710 357
Interest expense on lease liabilities 1 5 3
Accounting interest cost recorded on deferred consideration payment – 99 –
Total Interest expense 762 1,829 972

FOLEY WINES LIMITEDFOLEY WINES LIMITED | HALF YEARLY REPORT 2021
22

Notes to the
Financial Statements
(continued)
For the six months ended 31 December 2020




Unaudited
6 Months
31 Dec 2020
Group
$
Audited
12 M o n t h s
30 Jun 2020
Group
$
Unaudited
6 Months
31 Dec 2019
Group
$
5. EARNINGS PER SHARE
Basic Earnings per share ($) 3.90 10.53 4.14
The calculation is based on NZIFRS earnings of the Group of $2,566,000 (30Jun20 $6,921,000; 31Dec19 $2,723,000)
and the weighted average of 65,736,148 ordinary shares on issue during the period (30Jun20 65,736,148; 31Dec19
6 5, 736 ,14 8).
Diluted Earnings per share ($) 3.84 10.10 4.05
The calculation of diluted earnings per share is based on profit of $2,823,000 (30Jun20 $7,433,000; 31Dec19 $2,980,000),
being profit for the year adjusted for the interest on the convertible notes after income tax, and the weighted average of
73,599,173 ordinary shares on issue during the year (30Jun20 73,599,173; 31Dec19 73,599,173).
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:
31 Dec 2020
Number of
shares
30 Jun 2020
Number of
shares
31 Dec 2019
Number of
shares
Weighted average number of ordinary shares (Basic) 65,736,148 65,736,148 65,736,148
Convertible notes outstanding at period end 7,863,025 7,863,025 7,863,025
Weighted average number of ordinary shares (Diluted) 73,599,173 73,599,173 73,599,173
FOLEY WINES LIMITEDFOLEY WINES LIMITED | HALF YEARLY REPORT 2021
23

Notes to the
Financial Statements
(continued)
For the six months ended 31 December 2020
6. DIVIDENDS PAID PER SHARE
The calculation of dividends per share in respect of the interim 2021 period is based on the final dividend for 2020 paid on
23 October 2020 totalling $1,972,000 (30Jun20: $1,972,000 paid 18Oct19; 31Dec19: $1,972,000).




Unaudited
6 Months
31 Dec 2020
Group
$’000
Audited
12 M o n t h s
30 Jun 2020
Group
$’000
Unaudited
6 Months
31 Dec 2019
Group
$’000
7. SHARE CAPITAL
FULLY PAID UP ORDINARY SHARES
Balance at beginning of period 86,518 86,518 86,518
Movements in share capital – – –
Balance at end of period 86,518 86,518 86,518
Number of fully paid ordinary shares 65,736,148 65,736,148 65,736,148
There were no shares issued during the period.
FOLEY WINES LIMITEDFOLEY WINES LIMITED | HALF YEARLY REPORT 2021
24

Notes to the
Financial Statements
(continued)
For the six months ended 31 December 2020




Unaudited
6 Months
31 Dec 2020
Group
$’000
Audited
12 M o n t h s
30 Jun 2020
Group
$’000
Unaudited
6 Months
31 Dec 2019
Group
$’000
8. NET CASH FLOW FROM OPERATING ACTIVITIES
PROFIT AFTER INCOME TAX FOR THE PERIOD 2,566 6,921 2,723
NON-CASH ITEMS:
Depreciation 2,287 4,560 2,127
Amortisation 507 1,009 504
Increase/(decrease) in deferred tax 3 (1,812) 5
Impairment loss/(gain) recognised on inventories 11 18 12
Accounting interest recorded on deferred consideration payment – 99 –
Adjustments resulting from revaluation of grapes 436 (649) 318
Loss/(gain) on disposal of property, plant and equipment (39) 33 21
Loss on asset revaluations – 818 –
3,205 4,076 2,987
MOVEMENTS IN WORKING CAPITAL BALANCES:
Trade and other receivables (699) 1,704 (44)
Inventories 7,253 (2,010) 8,293
Biological work in progress (5,202) (209) (5,312)
Prepaid expenses and other current assets (466) 196 (100)
Trade and other payables (2,742) (449) (3,548)
Other financial assets/liabilities (435) (12) (195)
Current tax assets/liabilities (1,493) 575 (458)
(3,784) (205) (1,364)
NET CASH FLOW FROM OPERATING ACTIVITIES 1,987 10,792 4,346

9. FINANCIAL INSTRUMENTS
Change in fair value of financial assets/liabilities consists of:
Foreign currency forward contracts 435 13 180
Foreign currency option contracts – (4) 12
Interest rate swaps – 3 3
435 12 195


FOLEY WINES LIMITEDFOLEY WINES LIMITED | HALF YEARLY REPORT 2021
25

Notes to the
Financial Statements
(continued)
For the six months ended 31 December 2020




Unaudited
6 Months
31 Dec 2020
Group
$
Audited
12 M o n t h s
30 Jun 2020
Group
$
Unaudited
6 Months
31 Dec 2019
Group
$
10. NET TANGIBLE ASSETS
Net tangible assets per share 1.38 1.37 1.26
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 Wines Limited. Sales for the period were $3,395,000 for the Group (Jun20: $8,787,000;
Dec19: $4,563,000).
(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 Wines Limited. Marketing support charges for the period were
$54,000 for the Group (Jun20: $114,000; Dec19: $56,000).
(iii) Interest was paid/payable to Foley Family Wines Holdings, New Zealand Limited the parent of the Foley Wines
Limited under the convertible note. Interest paid/payable for the period was $357,000 for the Group (Jun20:
$710,000; Dec19: $357,000).
(iv) Sales were made 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 $56,000 for the Group (Jun20: $48,000; Dec19:
$23,000). Accommodation, meals and events provided by Wharekauhau to the Company and Foley Rewards
customers during the period totalled $2,000 (Jun20: $34,000; Dec19: $10,000). Wharekauhau also provided
contract labour totalling $17,000 (Jun20 & Dec19: Nil).
(v) Lighthouse Gin product was purchased for global distribution from Lighthouse Distillery Limited, a company owned
by Mark Turnbull, CEO and Director of Foley Wines Limited. Purchases during the period totalled $135,000 (Jun20:
$192,000; Dec19: $46,000). Administration services, rental, electricity and contract distilling services were
provided to Lighthouse Distillery Limited during the period of $42,000 (Jun20: $62,000; Dec19: $25,000).
FOLEY WINES LIMITEDFOLEY WINES LIMITED | HALF YEARLY REPORT 2021
26

Notes to the
Financial Statements
(continued)
For the six months ended 31 December 2020




Unaudited
6 Months
31 Dec 2020
Group
$’000
Audited
12 M o n t h s
30 Jun 2020
Group
$’000
Unaudited
6 Months
31 Dec 2019
Group
$’000
11. RELATED PARTY TRANSACTIONS (continued)
(b) Amounts owing to related parties at balance date:
Foley Family Wines Inc. 8 – –
Foley Family Wines Holdings, New Zealand Limited – convertible note 10,900 10,900 10,900
Lighthouse Distillery Limited 17 48 15

(c) Amounts owing from related parties at balance date:
Foley Family Wines Inc. 1,678 1,807 2,727
Wharekauhau Country Estate Limited 7 7 11
Lighthouse Distillery Limited 9 11 8


FOLEY WINES LIMITEDFOLEY WINES LIMITED | HALF YEARLY REPORT 2021
27

Notes to the
Financial Statements
(continued)
For the six months ended 31 December 2020
12. FOREIGN CURRENCY EXCHANGE RATES
The following spot foreign exchange rates have been applied at balance date:
NZ $1.00 =

31 December 2020

30 June 2020

31 December 2019
FWL BuyFWL SellFWL BuyFWL SellFWL BuyFWL Sell
Australian dollar 0.9347 0.9422 0.9317 0.9385 0.9576 0.9645
United States dollar 0.7180 0.7238 0.6388 0.6441 0.6705 0.6759
Great British pound 0.5275 0.5317 0.5201 0.5225 0.5108 0.5131
Euro 0.5843 0.5889 0.5688 0.5737 0.5981 0.6032
13. SUBSEQUENT EVENTS
No material events have occurred since balance date..
14. SHAREHOLDER INFORMATION
August 2021 Annual Report Published
November 2021 Annual Shareholders Meeting
FOLEY WINES LIMITEDFOLEY WINES LIMITED | HALF YEARLY REPORT 2021
28

For the six months ended 31 December 2020
DIRECTORS:
WP Foley, II (Chairman)
PR Brock (Deputy Chairman)
AJ Anselmi
GR Graham
AM Turnbull (CEO)
HEAD OFFICE ADDRESS:
13 Waihopai Valley Road
RD6, 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@foleywines.co.nz
WEBSITES:
www.foleywines.co.nz
www.grovemill.co.nz
www.vavasour.com
www.tekairanga.com
www.martinborough-vineyard.co.nz
www.mtdifficulty.nz
www.lighthousegin.co.nz
NATURE OF BUSINESS:
Production and distribution of wine
AUDITORS:
Deloitte Limited, Wellington
SOLICITORS:
Bell Gully, Auckland
BANKERS:
Bank of New Zealand, Auckland
REGISTRATION NO.
307139
REGISTERED OFFICE:
13 Waihopai Valley Road, RD6 Blenheim 7276, Marlborough, New Zealand
SHARE REGISTRAR:
Computershare Investor Services Limited
Level 2, 159 Hurstmere Road, Takapuna, Auckland
Private Bag 92119, Auckland 1142
Telephone +64 9 488 8777
Facsimile +64 9 488 8787
General enquiries can be directed to:
Email: enquiry@computershare.co.nz (please quote CSN or shareholder number)
Managing your shareholding online:
To change your address or payment instructions or view your investment
portfolio please visit: www.investorcentre.com/NZ
SHARE TRADING:
NZX Main Board – Security Code “FWL”
Company
Directory
FOLEY WINES LIMITEDFOLEY WINES LIMITED | HALF YEARLY REPORT 2021
29

See our story at
Vavasour.com
YEARS IN THE
AWATERE VALLEY,
AND WE’VE ONLY
JUST BEGUN.
30
I’m the fifth generation Marfell in the Awatere Valley.
It’s a great place to live, and a great place to make wine.
Vavasour was the first to make wine here in 1989. We know
how this stony soil and unforgiving climate conspire to create
wines of great complexity, perfume and elegance. And we’ve
only just begun.
Every year we become more curious and ask more questions
of this valley. Every year we capture more layers of flavour,
intensity and intrigue – wines that keep you coming back for
another sip.
That’s something I can’t just create, that comes from the place.
Stu Marfell
Chief Winemaker

Investors who wish to join the Foley Investors Wine Club,
please email info@ foleywines.co.nz