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 2021 (Unaudited)
Previous Reporting Period 6 months to 31 December 2020 (Unaudited)
Currency NZD
Amount (000s) Percentage change
Revenue from continuing
operations
$30,117 +6.6%
Total Revenue $30,117 +6.4%
Net profit/(loss) from continuing
operations
$3,534 +37.7%
Total net profit/(loss) $3,534 +37.7%
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
$1.49 $1.38
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”) $4,839 +35.8%
Operating Profit before interest, impairment, revaluations,
income tax, depreciation and amortisation (“Operating
EBITDA”) $8,480 +18.9%
This announcement should be read in conjunction with the
attached unaudited Financial Statements for the Six Months
ended 31 December 2021. A copy of the Half Yearly Report
December 2021 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

23 February 2022

Unaudited financial statements accompany this announcement.

---

Continued Progress Against a Backdrop of Global Challenges

WEDNESDAY 23 FEBRUARY 2022 – Foley Wines reports a positive result with continued
premiumisation, despite global challenges.

Case sales 278,000 (down 1%)
Bottled sales revenue $28,453,000 (up 8.5%)
Operating earnings $4,839,000 (up 35.8%)
Reported profit after tax $3,534,000 (up 37.7%)
Operating EBITDA $8,480,000 (up 18.9%)
Operating cashflow $10,101, 000 (up 408%)

Foley Wines CEO Mark Turnbull said, “The Company has navigated the period with a solid result
despite the challenges. The past six months has been another period of uncertainty, supply chain
disruptions and global turmoil in travel and hospitality, overlaid by a much smaller vintage across the
New Zealand industry. Notwithstanding these challenges, the six-month result clearly demonstrates
the continued execution of our premiumisation strategy.

The Company continues to focus on finding new routes to market for its brands globally, and in
particular those partners who can sell a premium portfolio.

“Our strategy for some time has been one of premiumisation – selling more wine at higher price
points. While case numbers have been relatively static, the Company has delivered a higher operating
profit, despite higher cost of goods for the period,” said Turnbull.

A key focus on the Company’s agenda is increased productivity in the vineyards. This is being
achieved through investment in new vines in underperforming vineyards along with equipment that
leads to lower labour costs.

In terms of outlook, the Company believes it is on track to deliver an operating profit in line with last
year’s result.

“While we continue to operate in uncertain times, we have complete confidence in our business model
which continues to go from strength to strength. In fact, we have received our first airline order for
two years, which we hope is a positive indication of an increase in global travel. Subject to a good
harvest result, the Company will be in strong position to further capitalise on the premiumisation
strategy in 2023,” said Turnbull.

ENDS
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 -

About Foley Wines

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.

Foley Wines is proud custodian of Martinborough Vineyard, Te Kairanga, Grove Mill,
Vavasour, Mt Difficulty and Lighthouse Gin.

---

HALF YEARLY REPORT
For the six months ended
31 December 2021
MT DIFFICULT Y
GHOST TOWN
COLLECTION NOW AVAILABLE.

Performance Overview 4
Chief Executive Officer (CEO) and Directors’ Report 6 – 9
Financial Statements (Unaudited)
Income Statement 12
Statement of Comprehensive Income 13
Statement of Changes In Equity 13 – 14
Statement of Financial Position 15 – 16
Statement of Cash Flows 17
Notes to the Financial Statements 20 – 26
Company Directory 27
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 2021 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 23 February 2022 and have not been audited.
Contents
FOLEY WINES LIMITEDFOLEY WINES LIMITED | HALF YEARLY REPORT 2022
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 2022
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 2022
3

Performance
Overview
CASE SALES 278,000 (down 1%)
BOTTLED SALES REVENUE $28,453,000 (up 8.5%)
OPERATING EARNINGS $4,839,000 (up 35.8%)
REPORTED PROFIT AFTER TAX $3, 534,000 (up 37.7%)
OPERATING EBITDA $8,480,000 (up 18.9%)
OPERATING CASHFLOW $10,101,000 (up 408%)
FOLEY WINES LIMITEDFOLEY WINES LIMITED | HALF YEARLY REPORT 2022
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 2021.
OPERATING PERFORMANCE
The operating profit before revaluations and income tax (“operating earnings”) for the
six months was $4,839,000 compared with $3,564,000 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 $3,534,000, up 37.7%
compared with $2,566,000 the previous year.
The past six months has been another period of uncertainty, supply chain disruptions and
global turmoil in travel and hospitality. Overlaying the issues associated with the ongoing
global pandemic, the 2021 vintage was well down on the prior year for the industry.
Smaller vintages translate to less wine to sell with higher costs of goods. Notwithstanding
these challenges, the Company has managed to navigate the period with a solid result.
Our strategy for some time has been one of premiumisation; simply put, selling more wine
at higher price points. The six–month result clearly demonstrates that this strategy is being
executed: while case sale numbers have been relatively static, the Company has delivered
a higher operating profit, despite higher cost of goods for the period.
The Company continues to focus on finding new routes to market for our brands globally,
and in particular those partners that can sell a premium portfolio.
CEO & Directors’
Report
FOLEY WINES LIMITEDFOLEY WINES LIMITED | CEO AND DIRECTORS’ REPORT
6

Bottled case sales
BOTTLED CASE SALES 6 MONTHS TO DECEMBER 2021
NEW ZEALAND 88,000 CASES (4)%
AUSTRALIA 66,000 CASES (7)%
USA/CANADA 55,000 CASES +6%
UK/EUROPE 50,000 CASES (2)%
REST OF WORLD 19,000 CASES +27%
TOTAL 278,000 CASES (1)%
FOLEY WINES LIMITEDFOLEY WINES LIMITED | CEO AND DIRECTORS’ REPORT
7

CASHFLOW
Operating cash flow was $10,101,000 for the six months, up from $1,987,000 the previous
year. This year’s cashflow is influenced by stronger sales in May and June 2021 compared
with the prior year, customers with better payment terms and an increase in revenue for the
six months. It was also impacted by grower payments of $953,000 being paid prior to 30
June 2021 rather than in July 2021 to assist growers that were impacted by the low vintage.
Capital expenditure was $2,608,000 for the six months, compared with $2,362,000 the
previous year. A key focus on the Company’s agenda is increased productivity in the
vineyards. This is being achieved through investment in new vines in underperforming
vineyards along with equipment that leads to lower labour costs.
The development at Te Kairanga is progressing at a slower pace than expected primarily
due to Covid related disruptions. Currently we expect this to be completed in the final
quarter of this year.
The total dividend paid during the six months was $2,629,000, up from the prior year of
$1,972,000 due to the dividend being increased to 4 cents per share (fully imputed).
FOLEY WINES LIMITEDFOLEY WINES LIMITED | CEO AND DIRECTORS’ REPORT
8

2022 HARVEST
The early indication is that the 2022 harvest is expected to be much better than last year,
with a return to average yields.
This bodes well for next year’s sales. However, with around a month to go, the weather will
play a key role in the final outcome.
OUTLOOK
While we continue to operate in uncertain times, we have complete confidence in our
business model which continues to go from strength to strength. In fact, we have received
our first airline order for two years, which we hope is a positive indication of an increase
in global travel. We believe that the Company is on track to deliver an operating profit in
line with last year’s result. This will be purely due to the execution of our premiumisation
strategy – we are selling more wine at higher price points. Subject to a solid harvest, the
Company will be in strong position to lift profitability in 2023.
For and on behalf of the Board of Directors
Mark Turnbull
CEO and Director
FOLEY WINES LIMITEDFOLEY WINES LIMITED | CEO AND DIRECTORS’ REPORT
9

FOLEY WINES LIMITEDFOLEY WINES LIMITED | HALF YEARLY REPORT 2022
Financial Statements
11

Income
Statement
For the six months ended 31 December 2021




Note
Unaudited
6 Months
31 Dec 2021
Group
$’000
Audited
12 M o n t h s
30 Jun 2021
Group
$’000
Unaudited
6 Months
31 Dec 2020
Group
$’000
Revenue 3 30,117 57,989 28,293
Expenses
Cost of sales (20,262) (38,359) (18,775)
Selling, marketing and promotion expenses (2,407) (6,007) (3,208)
Administration and corporate governance expenses (1,697) (3,939) (1,936)
Other expenses 3 (132) (141) (37)
Expenses excluding interest (24,498) (48,446) (23,956)
Profit before interest, impairment, revaluations
and income tax 5,619 9,543 4,337
Interest revenue 1 – –
Interest expense 4 (780) (1,508) (762)
Net finance costs (779) (1,508) (762)
Profit before impairment, revaluations and income tax 4,840 8,035 3,575
Impairment
Impairment of inventory (1) 1 (11)
Profit before revaluations and income tax 4,839 8,036 3,564
Revaluation gains and losses
Unrealised (loss)/gain in fair value of financial assets/liabilities 9 (214) (32) 435
Unrealised (loss)/gain on harvested grapes – (1,709) –
Realised reversal of loss/(gain) on harvested grapes 284 (1,001) (436)
Revaluation of property, plant & equipment – (114) –
Profit before income tax 3 4,9 0 9 5,180 3,563
Income tax expense (1,375) (1,314) (997)
Profit for the period net of tax, attributable
to Shareholders of the Parent Company 3,534 3,866 2,566
Basic Earnings per share cps (after tax) 5 5.38 5.88 3.90
Diluted Earnings per share cps (after tax) 5 5.15 5.88 3.84
These financial statements should be read in conjunction with the Notes to the Financial Statements on pages 20 to 26.
FOLEY WINES LIMITEDFOLEY WINES LIMITED | HALF YEARLY REPORT 2022
12

Statement of
Comprehensive Income
For the six months ended 31 December 2021




Unaudited
6 Months
31 Dec 2021
Group
$’000
Audited
12 M o n t h s
30 Jun 2021
Group
$’000
Unaudited
6 Months
31 Dec 2020
Group
$’000
Profit for the period 3,534 3,866 2,566
Other comprehensive income:
Items that will not be reclassified to profit or loss:
Revaluation of property, plant and equipment – 5,047 –
Income tax on items taken directly to or transferred from equity – (90) –
Other comprehensive income for the period, net of tax – 4,957 –
Total comprehensive income for the period, net of tax 3,534 8,823 2,566
These financial statements should be read in conjunction with the Notes to the Financial Statements on pages 20 to 26.
Note
Fully Paid
Ordinary
Shares
$‘000
Asset
Revaluation
Reserve
$’000
Retained
Earnings
$’000
Total
$’000
Unaudited 6 Months 31 December 2021 Group
Equity at 1 July 2021 86,518 22,537 23,305 132,360
Profit for the period – – 3,534 3,534
Total comprehensive income for the period – – 3,534 3,534
Distributions to owners 6 – – (2,629) (2,629)
Transactions with owners during period – – (2,629) (2,629)
Added to equity during the period – – 905 905
Equity at 31 December 2021 86,518 22,537 24,210 133,265
Dividends paid per share cps 6 4.0

For the six months ended 31 December 2021
Statement of
Changes in Equity
FOLEY WINES LIMITEDFOLEY WINES LIMITED | HALF YEARLY REPORT 2022
13

Statement of
Changes in Equity (continued)
For the six months ended 31 December 2021
Note
Fully Paid
Ordinary
Shares
$‘000
Asset
Revaluation
Reserve
$’000
Retained
Earnings
$’000
Total
$’000
Audited 12 Months 30 June 2021 Group
Equity at 1 July 2020 86,518 18,528 20,463 125,509
Profit for the period – – 3,866 3,866
Other comprehensive income for the period – 4,957 – 4,957
Transfer from Asset Revaluation Reserve to Retained Earnings – (948) 948 –
Total comprehensive income for the year – 4,009 4,814 8,823
Distributions to owners 6 – – (1,972) (1,972)
Transactions with owners during year – – (1,972) (1,972)
Added to equity during the year – 4,009 2,842 6,851
Equity at 30 June 2021 86,518 22,537 23,305 132,360
Dividends paid per share cps 6 3.0

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
These financial statements should be read in conjunction with the Notes to the Financial Statements on pages 20 to 26.
FOLEY WINES LIMITEDFOLEY WINES LIMITED | HALF YEARLY REPORT 2022
14

Statement of
Financial Position
As at 31 December 2021





Unaudited
6 Months
31 Dec 2021
Group
$’000
Audited
12 M o n t h s
30 Jun 2021
Group
$’000
Unaudited
6 Months
31 Dec 2020
Group
$’000
CURRENT ASSETS
Cash and cash equivalents 6,457 2,558 1,963
Trade and other receivables 7,954 9,998 8,275
Other financial assets – 64 438
Inventories 32,747 43,301 39,021
Biological work in progress 7,285 1,404 6,713
Prepaid expenses 1,665 677 1,303
Other current assets 278 288 –
56,386 58,290 57,713

NON–CURRENT ASSETS
Property, plant and equipment 107,212 106,966 102,573
Right–of–use assets 12,007 10,635 11,150
Intangible assets 35,125 35,122 35,122
Other financial assets – 6 –
Other receivables 680 710 –
155,024 153, 4 39 148 ,94 4
TOTAL ASSETS 211,410 211,729 206,657
These financial statements should be read in conjunction with the Notes to the Financial Statements on pages 20 to 26.
FOLEY WINES LIMITEDFOLEY WINES LIMITED | HALF YEARLY REPORT 2022
15

Statement of
Financial Position (continued)
As at 31 December 2021




Note
Unaudited
6 Months
31 Dec 2021
Group
$’000
Audited
12 M o n t h s
30 Jun 2021
Group
$’000
Unaudited
6 Months
31 Dec 2020
Group
$’000
CURRENT LIABILITIES
Trade and other payables 2,990 4,472 4,044
Loans and borrowings 1,417 1,047 2,132
Lease liabilities 914 820 894
Convertible notes 10,900 10,900 10,900
Other financial liabilities 56 – –
Current tax liabilities 143 916 169
16 , 420 18 ,155 18 ,139

NON–CURRENT LIABILITIES
Loans and borrowings 34,667 35,583 35,500
Lease liabilities 12,619 11,289 11,690
Other financial liabilities 88 – –
Deferred tax liabilities 14,351 14,342 15,225
61, 72 5 61, 214 62 , 415
TOTAL LIABILITIES 78,145 79,369 80,554

EQUITY
Share capital 7 86,518 86,518 86,518
Reserves 22,537 22,537 18,528
Retained earnings 24,210 23,305 21,057
TOTAL EQUITY 133,265 132,360 126,103
TOTAL LIABILITIES AND EQUITY 211, 410 211, 7 2 9 2 0 6 , 6 57
These financial statements should be read in conjunction with the Notes to the Financial Statements on pages 20 to 26.
FOLEY WINES LIMITEDFOLEY WINES LIMITED | HALF YEARLY REPORT 2022
16

Statement of
Cash Flows
For the six months ended 31 December 2021




Note
Unaudited
6 Months
31 Dec 2021
Group
$’000
Audited
12 M o n t h s
30 Jun 2021
Group
$’000
Unaudited
6 Months
31 Dec 2020
Group
$’000
CASH FLOWS FROM OPERATING ACTIVITIES
Cash was provided from (applied to)
Receipts from customers 34,280 59,635 29,637
Interest received 1 – –
Payments to suppliers and employees (21,292) (47,913) (24,400)
Interest and other costs of finance paid (750) (1,508) (762)
Income tax paid (2,138) (3,030) (2,488)
Net cash flow from operating activities 8 10,101 7,184 1,987

CASH FLOWS FROM INVESTING ACTIVITIES
Cash was provided from (applied to)
Sale of property, plant and equipment 64 195 56
Purchase of property, plant and equipment (2,608) (5,626) (2,362)
Purchase of intangible assets (3) – –
Net cash flow from investing activities (2,547) (5,431) (2,306)

CASH FLOW FROM FINANCING ACTIVITIES
Cash was provided for (applied to)
Dividends paid (2,629) (1,972) (1,972)
Loans advanced – 16,000 5,000
Loans repaid (546) (18,223) (6,221)
Lease liabilities repaid (480) (921) (446)
Net cash flow from financing activities (3,655) (5,116) (3,639)
Net increase in cash held (3,899) (3,363) (3,958)
Cash and cash equivalents at beginning of period 2, 558 5,9 21 5,9 21
Cash and cash equivalents at end of period 6,457 2,558 1,963
Comprising: Cash and cash equivalents 6,457 2,558 1,963
These financial statements should be read in conjunction with the Notes to the Financial Statements on pages 20 to 26.
FOLEY WINES LIMITEDFOLEY WINES LIMITED | HALF YEARLY REPORT 2022
17

GIN AS IT SHOULD BE.

FOLEY WINES LIMITEDFOLEY WINES LIMITED | HALF YEARLY REPORT 2022
Notes to Financial Statements
19

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 2021. 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 2021. The financial statements were authorised for issue
by the Directors on 23 February 2022.
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 2021 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 2021 Annual Report.
Notes to the
Financial Statements
For the six months ended 31 December 2021
FOLEY WINES LIMITEDFOLEY WINES LIMITED | HALF YEARLY REPORT 2022
20

Notes to the
Financial Statements (continued)
For the six months ended 31 December 2021




Unaudited
6 Months
31 Dec 2021
Group
$’000
Audited
12 M o n t h s
30 Jun 2021
Group
$’000
Unaudited
6 Months
31 Dec 2020
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 28,453 53,255 26,235
Sales revenue – other 1,664 4,697 2,021
Total sales revenue 30,117 57,952 28,256
Other revenue – government grant (refer note 4 2020 Annual Report) – 37 37
30,117 57,989 28,293
Included in profit before income tax for the period are the following:
EXPENSES:
Amortisation – lease right–of–use assets 533 1,022 507
Depreciation 2,328 4,761 2,287
Directors’ fees 120 240 120
Employee benefits expense: Short–term employee benefits 3,725 8,853 3,879
Excise duty and HPA levy 2,776 5,303 2,873
Fees paid to auditors:
– Audit of the financial statements (fees and disbursements) – 91 –
Other expenses:
– Acquisition and compliance expenses 124 31 28
– Covid–19 related expenses 8 10 9
– Restructure expenses – 100 –

4. INTEREST EXPENSE

Interest on loans and borrowings 423 797 404
Interest on convertible notes 357 709 357
Interest expense on lease liabilities – 2 1
Total Interest expense 780 1,508 762

FOLEY WINES LIMITEDFOLEY WINES LIMITED | HALF YEARLY REPORT 2022
21

Notes to the
Financial Statements (continued)
For the six months ended 31 December 2021




Unaudited
6 Months
31 Dec 2021
Group
$
Audited
12 M o n t h s
30 Jun 2021
Group
$
Unaudited
6 Months
31 Dec 2020
Group
$
5. EARNINGS PER SHARE
Basic Earnings per share ($) 5.38 5.88 3.90
The calculation is based on NZIFRS earnings of the Group of $3,534,000 (30Jun21 $3,866,000; 31Dec20 $2,566,000)
and the weighted average of 65,736,148 ordinary shares on issue during the period (30Jun21 65,736,148; 31Dec20
6 5, 736 ,14 8).
Diluted Earnings per share ($) 5.15 5.88 3.84
The calculation of diluted earnings per share is based on profit of $3,791,000 (30Jun21 $4,376,000; 31Dec20 $2,823,000),
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 (30Jun21 73,599,173; 31Dec20 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 2021
Number of
shares
30 Jun 2021
Number of
shares
31 Dec 2020
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 2022
22

Notes to the
Financial Statements (continued)
For the six months ended 31 December 2021
6. DIVIDENDS PAID PER SHARE
The calculation of dividends per share in respect of the interim 2022 period is based on the final dividend for 2021 paid on
20 October 2021 totalling $2,629,000 (30Jun21: $1,972,000 paid 23Oct20; 31Dec20: $1,972,000).




Unaudited
6 Months
31 Dec 2021
Group
$’000
Audited
12 M o n t h s
30 Jun 2021
Group
$’000
Unaudited
6 Months
31 Dec 2020
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 2022
23

Notes to the
Financial Statements (continued)
For the six months ended 31 December 2021




Unaudited
6 Months
31 Dec 2021
Group
$’000
Audited
12 M o n t h s
30 Jun 2021
Group
$’000
Unaudited
6 Months
31 Dec 2020
Group
$’000
8. NET CASH FLOW FROM OPERATING ACTIVITIES
PROFIT AFTER INCOME TAX FOR THE PERIOD 3,534 3,866 2,566
NON–CASH ITEMS:
Depreciation 2,328 4,761 2,287
Amortisation 533 1,022 507
Increase/(decrease) in deferred tax 9 (970) 3
Impairment loss/(gain) recognised on inventories 1 (1) 11
Adjustments resulting from revaluation of grapes (284) 2,709 436
Loss/(gain) on disposal of property, plant and equipment (30) 272 (39)
Loss on asset revaluations – 114 –
Grower advance fair value adjustment 30 72 –
2,587 7,979 3,205
MOVEMENTS IN WORKING CAPITAL BALANCES:
Trade and other receivables 2,043 (2,324) (699)
Inventories 10,837 712 7,253
Biological work in progress (5,881) 107 (5,202)
Prepaid expenses and other current assets (978) (128) (466)
Trade and other payables (1,482) (2,314) (2,742)
Other financial assets/liabilities 214 32 (435)
Current tax assets/liabilities (773) (746) (1,493)
3,980 (4,661) (3,784)
NET CASH FLOW FROM OPERATING ACTIVITIES 10,101 7,184 1,987

9. FINANCIAL INSTRUMENTS
Change in fair value of financial assets/liabilities consists of:
Foreign currency forward contracts (214) (32) 435
(214) (32) 435


FOLEY WINES LIMITEDFOLEY WINES LIMITED | HALF YEARLY REPORT 2022
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Notes to the
Financial Statements (continued)
For the six months ended 31 December 2021




Unaudited
6 Months
31 Dec 2021
Group
$
Audited
12 M o n t h s
30 Jun 2021
Group
$
Unaudited
6 Months
31 Dec 2020
Group
$
10. NET TANGIBLE ASSETS
Net tangible assets per share 1.49 1.48 1.38
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 $3,753,000 for the Group (Jun21: $8,334,000;
Dec20: $3,395,000).
(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
$Nil for the Group (Jun21: $104,000; Dec20: $54,000).
(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 (Jun21:
$709,000; Dec20: $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 $13,000 for the Group (Jun21: $72,000; Dec20:
$56,000). Accommodation, meals, events, labour and vouchers for Foley Rewards provided by Wharekauhau to
the Company and Foley Rewards customers during the period totalled $8,000 (Jun21: $29,000; Dec20: $19,000).
(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 $64,000 (Jun21:
$203,000; Dec20: $135,000). Administration services, rental, electricity and contract distilling services were
provided to Lighthouse Distillery Limited during the period of $35,000 (Jun21: $88,000; Dec20: $42,000).
FOLEY WINES LIMITEDFOLEY WINES LIMITED | HALF YEARLY REPORT 2022
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Notes to the
Financial Statements (continued)
For the six months ended 31 December 2021




Unaudited
6 Months
31 Dec 2021
Group
$’000
Audited
12 M o n t h s
30 Jun 2021
Group
$’000
Unaudited
6 Months
31 Dec 2020
Group
$’000
11. RELATED PARTY TRANSACTIONS (continued)
(b) Amounts owing to related parties at balance date:
Foley Family Wines Holdings, New Zealand Limited – convertible note 10,900 10,900 10,900
Lighthouse Distillery Limited 7 3 17
Foley Family Wines Inc. – – 8
(c) Amounts owing from related parties at balance date:
Foley Family Wines Inc. 2,271 2,588 1,678
Wharekauhau Country Estate Limited 3 1 7
Lighthouse Distillery Limited 10 5 9

12. FOREIGN CURRENCY EXCHANGE RATES
The following spot foreign exchange rates have been applied at balance date:
NZ $1.00 =

31 December 2021

30 June 2021

31 December 2020
FWL BuyFWL SellFWL BuyFWL SellFWL BuyFWL Sell
Australian dollar 0.9381 0.9457 0.9268 0.9342 0.9347 0.9422
United States dollar 0.6800 0.6854 0.6964 0.7020 0.7180 0.7238
Great British pound 0.5042 0.5082 0.5028 0.5068 0.5275 0.5317
Euro 0.6012 0.6060 0.5852 0.5899 0.5843 0.5889
13. SUBSEQUENT EVENTS
No material events have occurred since balance date.
14. SHAREHOLDER INFORMATION
August 2022 Annual Report Published
November 2022 Annual Shareholders Meeting
FOLEY WINES LIMITEDFOLEY WINES LIMITED | HALF YEARLY REPORT 2022
26

For the six months ended 31 December 2021
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
Jennifer Mills & Associates, 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 2022
27

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