Foley Wines Limited Half Yearly Report to 31 December 2022

Results announcement

Results for announcement to the market
Name of issuer Foley Wines Limited
Reporting Period 6 months to 31 December 2022 (Unaudited)
Previous Reporting Period 6 months to 31 December 2021 (Unaudited)
Currency NZD
Amount (000s) Percentage change
Revenue from continuing
operations
$34,986 +16.2%
Total Revenue $34,986 +16.2%
Net profit/(loss) from continuing
operations
$4,208 +22.9%
Total net profit/(loss) $4,208 +22.9%
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
$1.68 $1.49
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”) $5,599 +15.7%
Operating Profit before interest, impairment, revaluations,
income tax, depreciation and amortisation (“Operating
EBITDA”) $10,146 +19.6%
This announcement should be read in conjunction with the
attached unaudited Financial Statements for the Six Months
ended 31 December 2022. A copy of the Half Yearly Report
December 2022 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 2023

Unaudited financial statements accompany this announcement.

---

Premiumisation Strategy Continues to Deliver Results

THURSDAY 23 FEBRUARY 2023 – Foley Wines reports a positive result with continued premiumisation,
despite global challenges.


Case sales 312,000 (up 12%)
Bottled sales revenue $33,203,000 (up 16.7%)
Operating earnings $5,599,000 (up 15.7%)
Reported profit after tax $4,208,000 (up 22.9%)
Operating EBITDA $10,146,000 (up 19.69%)


Foley Wines CEO Mark Turnbull said, “This six month result has been particularly pleasing given ongoing
disruptions and this is reflective of the work that has been done building our premiumisation strategy.”

“As well as ongoing shipping delays to various global ports, major flooding in August in Marlborough caused a
significant logistical issue in terms of getting to the Port of Nelson. Covid continued to cause problems in terms
of work force shortages. Notwithstanding these issues, cases were up 12% which was very pleasing,” said
Turnbull.

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.

“Over the course of the last few years we have established some strong global partnerships that will certainly
help navigate our way through the head winds in the global economy,” said Turnbull.

The company’s focus on quality continues to underpin its premiumisation strategy. “Despite a very challenging
2022 vintage, our wines achieved incredible results from the 2022 awards season with five Trophies, 19 Gold
Medals and 26 90+ Point results – a testament to the hard work of our viticulture and winemaking teams,” said
Turnbull.

The Company’s vineyard and wineries fortunately did not sustain damage during cyclone Gabrielle, however
significant rainfall means viticulture teams are working hard to manage crops. The early indication is that there
are no material issues with the 2023 harvest.

“Our thoughts are with the people who have been so badly affected by recent weather. We know that farming is
not just a business but a way of life and we feel for those affected,” said Turnbull.

The Company is excited to be opening its hospitality development in Martinborough in the coming months,
which will be a key strategic initiative in the journey of building the Te Kairanga, Martinborough Vineyard and
Lighthouse Gin brands.

- 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.


About The Runholder

Opening in 2023, The Runholder is the new home of Te Kairanga, Martinborough Vineyard and Lighthouse Gin
in Martinborough. Nestled on the edge of the Martinborough Terrace with a 100 person restaurant, tasting room,
private dining, and distillery, it will be the perfect place to enjoy the best of the Wairarapa while taking in
spectacular views of Martinborough’s countryside.

---

HALF YEARLY REPORT
For the six months ended 31 December 2022

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 2022 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 2023 and have not been audited.
Contents
FOLEY WINES LIMITEDFOLEY WINES LIMITED | HALF YEARLY REPORT 2023
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 2023
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 2023
3

Performance
Overview
CASE SALES 312,000 (up 12%)
BOTTLED SALES REVENUE $33, 203,0 0 0 (up 16.7%)
OPERATING EARNINGS $5,599,000 (up 15.7%)
REPORTED PROFIT AFTER TAX $4,208,000 (up 22.9%)
OPERATING EBITDA $10,146,000 (up 19.6%)
OPERATING CASH FLOW $6,978,000 (down 31%)
FOLEY WINES LIMITEDFOLEY WINES LIMITED | HALF YEARLY REPORT 2023
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 2022.
OPERATING PERFORMANCE
The operating profit before revaluations and income tax (“operating earnings”) for the
six months was $5,599,000 compared with $4,839,000 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 $4,208,000, up 22.9%
compared with $3,423,000 the previous year.
This six month result has been particularly pleasing given ongoing disruptions. As well as
ongoing shipping delays to various global ports, major flooding in August in Marlborough
caused a significant logistical issue in terms of getting to the Port of Nelson. Covid
continued to cause problems in terms of work force shortages. Notwithstanding these
issues, cases were up 12% which was very pleasing.
A summary of market sales is set out below:
CEO & Directors’
Report
FOLEY WINES LIMITEDFOLEY WINES LIMITED | CEO AND DIRECTORS’ REPORT
6

Bottled case sales
BOTTLED CASE SALES 6 MONTHS TO DECEMBER 2022
NEW ZEALAND 91,000 CASES +3%
AUSTRALIA 93,000 CASES +41%
USA/CANADA 48,000 CASES (4)%
UK/EUROPE 65,000 CASES +18%
REST OF WORLD 15,000 CASES (21)%
TOTAL 312,000 CASES +12%
FOLEY WINES LIMITEDFOLEY WINES LIMITED | CEO AND DIRECTORS’ REPORT
7

CASH FLOW
Operating cash flow was $6,978,000 for the six months, down from $10,101,000 the
previous year. Payments to suppliers was a major influence along with higher interest
payments, which is a function of interest rate increases and an increase in borrowings with
the vineyard purchase in Central Otago last year.
Capital expenditure was $4,526,000 for the six months, compared with $2,608,000 the
previous year. The major influence of this increase is the development at Te Kairanga,
which is due to be completed by the end of May.
The total dividend paid during the six months was $2,629,000, the same as the prior year.

2023 HARVEST
The early indication is that there are no material issues with the 2023 harvest. However,
we have been experiencing some severe weather patterns recently and we sincerely hope
settled weather arrives soon and allows an undisrupted harvest.
FOLEY WINES LIMITEDFOLEY WINES LIMITED | CEO AND DIRECTORS’ REPORT
8

OUTLOOK
The company has performed well over the first six months and this is reflective of the
work that has been done building our premiumisation strategy. Over the course of the last
few years we have established some strong global partnerships that will certainly help
navigate our way through the head winds in the global economy.
We are excited to be opening our development in Martinborough in the coming months,
which will be a key strategic initiative in the journey of building the Te Kairanga,
Martinborough Vineyard and Lighthouse Gin brands.
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 2023
Financial Statements
11

Income
Statement
For the six months ended 31 December 2022




Note
Unaudited
6 Months
31 Dec 2022
Group
$’000
Audited
12 M o n t h s
30 Jun 2022
Group
$’000
Unaudited
6 Months
31 Dec 2021
Group
$’000
Revenue 3 34,986 57,692 30,117
Expenses
Cost of sales (22,685) (38,199) (20,262)
Selling, marketing and promotion expenses (2,835) (4,658) (2,407)
Administration and corporate governance expenses (2,348) (4,004) (1,697)
Vineyard acquisition and replacement losses (11) (1,302) –
Other expenses 3 (4) (19) (132)
Expenses excluding interest (27,883) (48,182) (24,498)
Profit before interest, impairment, revaluations
and income tax 7,103 9,510 5,619
Interest revenue 19 20 1
Interest expense 4 (1,515) (1,741) (780)
Net finance costs (1,496) (1,721) (779)
Profit before impairment, revaluations and income tax 5,607 7,789 4,840
Impairment
Impairment of inventory (8) (5) (1)
Profit before revaluations and income tax 5,599 7,784 4,839
Revaluation gains and losses
Unrealised gain/(loss) in fair value of financial assets/liabilities 9 1,024 (910) (214)
Unrealised gain on harvested grapes – 2,400 –
Realised reversal of (gain)/loss on harvested grapes (730) 505 284
Revaluation of property, plant & equipment – (8) –
Profit before income tax 3 5,893 9,771 4,909
Income tax expense (1,685) (3,575) (1,486)
Profit for the period net of tax, attributable
to Shareholders of the Parent Company 4,208 6,196 3,423
Basic Earnings per share cps (after tax) 5 6.40 9.43 5.21
Diluted Earnings per share cps (after tax) 5 6.07 9.11 5.00
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 2023
12

Statement of
Comprehensive Income
For the six months ended 31 December 2022




Unaudited
6 Months
31 Dec 2022
Group
$’000
Audited
12 M o n t h s
30 Jun 2022
Group
$’000
Unaudited
6 Months
31 Dec 2021
Group
$’000
Profit for the period 4,208 6,196 3,423
Other comprehensive income:
Items that will not be reclassified to profit or loss:
Revaluation of property, plant and equipment – 8,713 –
Income tax on items taken directly to or transferred from equity – (845) –
Other comprehensive income for the period, net of tax – 7,868 –
Total comprehensive income for the period, net of tax 4,208 14,064 3,423

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 2022 Group
Equity at 1 July 2022 86,518 29,888 27,389 143,795
Profit for the period - - 4,208 4,208
Total comprehensive income for the period - - 4,208 4,208
Distributions to owners 6 - - (2,629) (2,629)
Transactions with owners during period - - (2,629) (2,629)
Added to equity during the period - - 1,579 1,579
Equity at 31 December 2022 86,518 29,888 28,968 145,374
Dividends paid per share cps 6 4.0

For the six months ended 31 December 2022
Statement of
Changes in Equity
FOLEY WINES LIMITEDFOLEY WINES LIMITED | HALF YEARLY REPORT 2023
13

Statement of
Changes in Equity
(continued)
For the six months ended 31 December 2022
Note
Fully Paid
Ordinary
Shares
$‘000
Asset
Revaluation
Reserve
$’000
Retained
Earnings
$’000
Total
$’000
Audited 12 Months 30 June 2022 Group
Equity at 1 July 2021 86,518 22,537 23,305 132,360
Profit for the period - - 6,196 6,196
Other comprehensive income for the period - 7,868 - 7,868
Transfer from Asset Revaluation Reserve to Retained Earnings - (517) 517 -
Total comprehensive income for the year - 7,351 6,713 14,064
Distributions to owners 6 - - (2,629) (2,629)
Transactions with owners during year - - (2,629) (2,629)
Added to equity during the year - 7,351 4,084 11,435
Equity at 30 June 2022 86,518 29,888 27,389 143,795
Dividends paid per share cps 6 4.0

Unaudited 6 Months 31 December 2021 Group
Equity at 1 July 2021 86,518 22,537 23,305 132,360
Profit for the period - - 3,423 3,423
Total comprehensive income for the period - - 3,423 3,423
Distributions to owners 6 - - (2,629) (2,629)
Transactions with owners during period - - (2,629) (2,629)
Added to equity during the period - - 794 794
Equity at 31 December 2021 86,518 22,537 24,099 133,154
Dividends paid per share cps 6 4.0

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 2023
14

Statement of
Financial Position
As at 31 December 2022





Unaudited
6 Months
31 Dec 2022
Group
$’000
Audited
12 M o n t h s
30 Jun 2022
Group
$’000
Unaudited
6 Months
31 Dec 2021
Group
$’000
CURRENT ASSETS
Cash and cash equivalents 192 354 6,457
Trade and other receivables 12,029 9,834 7,954
Other financial assets 28 – –
Inventories 38,128 49,624 32,747
Biological work in progress 8,680 1,948 7,285
Prepaid expenses 2,374 815 1,665
Other current assets – 46 278
61,431 62,622 56,386

NON–CURRENT ASSETS
Property, plant and equipment 124,188 122,138 107,212
Right–of–use assets 13,433 12,307 12,007
Intangible assets 35,125 35,125 35,125
Other financial assets 156 – –
Other receivables 1,046 1,028 680
173 ,94 8 170 , 598 155 ,0 24
TOTAL ASSETS 235,379 233,220 211,410
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 2023
15

Statement of
Financial Position
(continued)
As at 31 December 2022




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

Trade and other payables 4,487 4,356 2,990
Bank overdraft 1,249 666 –
Loans and borrowings 14,342 2,257 1,417
Lease liabilities 1,481 932 914
Convertible notes 10,900 10,900 10,900
Other financial liabilities – 608 56
Current tax liabilities 772 966 444
33,231 20,685 16,721

NON–CURRENT LIABILITIES
Loans and borrowings 27,603 39,776 34,667
Lease liabilities 13,593 12,952 12,619
Other financial liabilities – 232 88
Deferred tax liabilities 15,578 15,780 14,161
5 6 , 7 74 6 8 , 74 0 61, 5 3 5
TOTAL LIABILITIES 90,005 89,425 78,256

EQUITY
Share capital 7 86,518 86,518 86,518
Reserves 29,888 29,888 22,537
Retained earnings 28,968 27,389 24,099
TOTAL EQUITY 145,374 143,795 133,154
TOTAL LIABILITIES AND EQUITY 235,379 233,220 211,410
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 2023
16

Statement of
Cash Flows
For the six months ended 31 December 2022




Note
Unaudited
6 Months
31 Dec 2022
Group
$’000
Audited
12 M o n t h s
30 Jun 2022
Group
$’000
Unaudited
6 Months
31 Dec 2021
Group
$’000
CASH FLOWS FROM OPERATING ACTIVITIES
Cash was provided from (applied to)
Receipts from customers 35,090 61,576 34,280
Interest received 1 1 1
Payments to suppliers and employees (24,517) (49,338) (21,292)
Interest and other costs of finance paid (1, 515) (1, 740) (750)
Income tax paid (2,081) (2,931) (2,138)
Net cash flow from operating activities 8 6,978 7,568 10,101
CASH FLOWS FROM INVESTING ACTIVITIES
Cash was provided from (applied to)
Sale of property, plant and equipment 51 134 64
Purchase of property, plant and equipment (4,526) (6,188) (2,608)
Purchase of property, plant and equipment – Zebra Vineyard – (6,302) –
Purchase of intangible assets – (3) (3)
Grower and other loans repaid – 100 –
Net cash flow from investing activities (4,475) (12,259) (2,547)
CASH FLOW FROM FINANCING ACTIVITIES
Cash was provided for (applied to)
Dividends paid (2,629) (2,629) (2,629)
Loans advanced 1,000 32,000 –
Loans repaid (1,088) (26,597) (546)
Lease liabilities repaid (531) (953) (480)
Net cash flow from financing activities (3,248) 1,821 (3,655)
Net increase in cash held (745) (2,870) 3,899
Cash and cash equivalents at beginning of period (312) 2,558 2,558
Cash and cash equivalents at end of period (1,057) (312) 6,457
Comprising: Cash and cash equivalents 192 354 6,457
Bank overdraft (1,249) (666) –
(1,057) (312) 6,457
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 2023
17

FOLEY WINES LIMITEDFOLEY WINES LIMITED | HALF YEARLY REPORT 2023
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 2022. 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 2022. The financial statements were authorised for issue
by the Directors on 23 February 2023.
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 2022.
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 2022 Annual Report.
Notes to the
Financial Statements
For the six months ended 31 December 2022
FOLEY WINES LIMITEDFOLEY WINES LIMITED | HALF YEARLY REPORT 2023
20

Notes to the
Financial Statements
(continued)
For the six months ended 31 December 2022




Unaudited
6 Months
31 Dec 2022
Group
$’000
Audited
12 M o n t h s
30 Jun 2022
Group
$’000
Unaudited
6 Months
31 Dec 2021
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 33,203 54,747 28,453
Sales revenue – other 1,783 2,945 1,664
Total sales revenue 34,986 57,692 30,117
Sales revenue – other includes the sale of other products such as bulk wine,
spirits, merchandise, restaurant meals and non-alcoholic beverages.
EXPENSES:
Amortisation – lease right–of–use assets 595 1,056 533
Depreciation 2,448 4,578 2,328
Directors’ fees 120 240 120
Employee benefits expense: Short–term employee benefits 4,146 8,724 3,725
Excise duty and HPA levy 3,064 4,727 2,776
Fees paid to auditors:
– Audit of the financial statements (fees and disbursements) 57 99 47
Other expenses:
– Acquisition and compliance expenses 4 – 124
– Covid–19 related expenses – 19 8
4. INTEREST EXPENSE
Interest on loans and borrowings 1,154 1,033 423
Interest on convertible notes 357 708 357
Interest expense on lease liabilities 4 – –
Total Interest expense 1,515 1,741 780

FOLEY WINES LIMITEDFOLEY WINES LIMITED | HALF YEARLY REPORT 2023
21

Notes to the
Financial Statements
(continued)
For the six months ended 31 December 2022




Unaudited
6 Months
31 Dec 2022
Group
$
Audited
12 M o n t h s
30 Jun 2022
Group
$
Unaudited
6 Months
31 Dec 2021
Group
$
5. EARNINGS PER SHARE
Basic Earnings per share ($) 6.40 9.43 5.21
The calculation is based on NZIFRS earnings of the Group of $4,208,000 (30Jun22 $6,196,000; 31Dec21 $3,423,000)
and the weighted average of 65,736,148 ordinary shares on issue during the period (30Jun22 65,736,148; 31Dec21
6 5, 736 ,14 8).
Diluted Earnings per share ($) 6.07 9.11 5.00
The calculation of diluted earnings per share is based on profit of $4,465,000 (30Jun22 $6,706,000; 31Dec21 $3,680,000),
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 (30Jun22 73,599,173; 31Dec21 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 2022
Number of
shares
30 Jun 2022
Number of
shares
31 Dec 2021
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 2023
22

Notes to the
Financial Statements
(continued)
For the six months ended 31 December 2022
6. DIVIDENDS PAID PER SHARE
The calculation of dividends per share in respect of the interim 2023 period is based on the final dividend for 2022 paid on
21 October 2022 totalling $2,629,000 (30Jun22: $2,629,000 paid 20Oct21; 31Dec21: $2,629,000).




Unaudited
6 Months
31 Dec 2022
Group
$’000
Audited
12 M o n t h s
30 Jun 2022
Group
$’000
Unaudited
6 Months
31 Dec 2021
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 2023
23

Notes to the
Financial Statements
(continued)
For the six months ended 31 December 2022




Unaudited
6 Months
31 Dec 2022
Group
$’000
Audited
12 M o n t h s
30 Jun 2022
Group
$’000
Unaudited
6 Months
31 Dec 2021
Group
$’000
8. CASH FLOW INFORMATION
(a) NET CASH FLOW FROM OPERATING ACTIVITIES
PROFIT AFTER INCOME TAX FOR THE PERIOD 4,208 6,196 3,423
NON–CASH ITEMS:
Depreciation 2,448 4,578 2,328
Amortisation 595 1,056 533
Increase/(decrease) in deferred tax (202) 593 120
Impairment loss/(gain) recognised on inventories 8 5 1
Adjustments resulting from revaluation of grapes 730 (2,905) (284)
Loss/(gain) on disposal of property, plant and equipment (23) 1,092 (30)
Loss on asset revaluations – 8 –
Grower advance fair value adjustment (18) 68 30
Movement in derivative financial instruments
(Other financial assets/liabilities) (1,024) 910 214
2,514 5,405 2,912
MOVEMENTS IN WORKING CAPITAL BALANCES:
Trade and other receivables (2,195) 216 2,043
Inventories 10,759 (3,423) 10,837
Biological work in progress (6,732) (544) (5,881)
Prepaid expenses and other current assets (1,513) (215) (978)
Trade and other payables 131 (116) (1,482)
Current tax assets/liabilities (194) 50 (773)
256 (4,033) 3,766
NET CASH FLOW FROM OPERATING ACTIVITIES 6,978 7,568 10,101
(b) NET LOANS AND BORROWINGS
RECONCILIATION
Total Loans and borrowings 41,945 42,033 36,084
Loans advanced during the year 1,000 32,000 –
Loans repaid during the year (1,088) (26,597) (546)
Net movement in net debt – all cash flows (88) 5,403 (546)


FOLEY WINES LIMITEDFOLEY WINES LIMITED | HALF YEARLY REPORT 2023
24

Notes to the
Financial Statements
(continued)
For the six months ended 31 December 2022




Unaudited
6 Months
31 Dec 2022
Group
$’000
Audited
12 M o n t h s
30 Jun 2022
Group
$’000
Unaudited
6 Months
31 Dec 2021
Group
$’000
9. FINANCIAL INSTRUMENTS
Change in fair value of financial assets/liabilities consists of:
Foreign currency forward contracts 1,024 (910) (214)
$ $ $
10. NET TANGIBLE ASSETS
Net tangible assets per share ($) 1.68 1.65 1.49
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 $4,249,000 for the Group (Jun22: $7,868,000;
Dec21: $3,753,000).
(ii) Interest was paid/payable to Foley 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 (Jun22: $709,000; Dec21:
$357,000).
(iii) 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 $36,000 for the Group (Jun22: $31,000; Dec21:
$13,000). Accommodation, meals, events, labour and vouchers for Foley Rewards provided by Wharekauhau to
the Company and Foley Rewards customers during the period totalled $15,000 (Jun22: $52,000; Dec21: $8,000).
(iv) 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 $79,000 (Jun22:
$105,000; Dec21: $64,000). Administration services, rental, electricity and contract distilling services were
provided to Lighthouse Distillery Limited during the period of $29,000 (Jun22: $62,000; Dec21: $35,000).
(v) Sales were made to Foley Hospitality Limited (formerly Nourish Group Limited) and subsidiary companies, a 100%
subsidiary of Foley Holdings New Zealand Limited, the parent company of Foley Wines Limited from July 2022.
Sales for the period were $35,000. Meals and event services were provided by Foley Hospitality restaurants during
the period of $15,000.
FOLEY WINES LIMITEDFOLEY WINES LIMITED | HALF YEARLY REPORT 2023
25

Notes to the
Financial Statements
(continued)
For the six months ended 31 December 2022




Unaudited
6 Months
31 Dec 2022
Group
$’000
Audited
12 M o n t h s
30 Jun 2022
Group
$’000
Unaudited
6 Months
31 Dec 2021
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
Wharekauhau Country Estate Limited 1 1 –
(c) Amounts owing from related parties at balance date:
Foley Family Wines Inc. 2,450 1,176 2,271
Wharekauhau Country Estate Limited 12 2 3
Lighthouse Distillery Limited 6 18 10
Foley Hospitality Limited and subsidiaries 21 2 1

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

31 December 2022

30 June 2022

31 December 2021
FWL BuyFWL SellFWL BuyFWL SellFWL BuyFWL Sell
Australian dollar 0.9333 0.9407 0.9004 0.9076 0.9381 0.9457
United States dollar 0.6330 0.6380 0.6191 0.6241 0.6800 0.6854
Great British pound 0.5248 0.5290 0.5108 0.5149 0.5042 0.5082
Euro 0.5927 0.5975 0.5930 0.5978 0.6012 0.6060

13. SUBSEQUENT EVENTS
No material events have occurred since balance date.
14. SHAREHOLDER INFORMATION
August 2023 Annual Report Published
November 2023 Annual Shareholders Meeting
FOLEY WINES LIMITEDFOLEY WINES LIMITED | HALF YEARLY REPORT 2023
26

For the six months ended 31 December 2022
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 2023
27

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