DGL – Interim 2023 Powerpoint Presentation

31 DECEMBER 2022
HALF-YEAR
RESULTS

RECORD GLOBAL CASE SALES
2
“Delegat
 
Group
 
has
 
achieved
 
record
 
global
 
case
 
sales
 
of
 
1,970,000
 
cases
 
for
 
the
 
six
 
months
 
to
 
31
 
December
 
2022.”
STEVEN
 
CARDEN
MANAGING
 
DIRECTOR

Record
 
global
 
case
 
sales
 
of
 
1,970,000,
 
4%
 
higher
 
than
 
last
 
year
18%
 
sales
 
growth
 
in
 
North
 
American
 
(USA
 
and
 
Canada)
 
region
Operating
 
NPAT
 
of
 
$40.2
 
million
Cash
 
from
 
Operations
 
of
 
$35.3
 
million
PERFORMANCE HIGHLIGHTS
3

CASE SALES AND FX
4
Case
 
Sales
 
(000's)
Dec
 
2022
Dec
 
2021
%
 
Change
vs
 
2021
    
UK,
 
Ireland
 
and
 
Europe
559
                
626
                
‐
11%
    
North
 
America
 
(USA
 
and
 
Canada)
1,028
            
874
                
18%
    
Australia,
 
NZ
 
and
 
Asia
 
Pacific
383
                
393
                
‐
3%
Total
 
Cases
1,970
            
1,893
            
4%
Foreign
 
Currency
 
Rates
Dec
 
2022
Dec
 
2021
%
 
Change
vs
 
2021
    
GB£
0.5200
          
0.5062
          
‐
3%
    
AU$
0.9300
          
0.9472
          
2%
    
US$
0.6301
          
0.6888
          
9%
    
CA$
0.8311
          
0.8746
          
5%

SALES REVENUE GROWTH ANALYSIS
5
NZ$
 
millions
December
 
2022
 
Actual
December
 
2021
 
Actual
%
 
Change
vs
 
2021
Sales
 
Revenue
197.1
                
175.9
                
12%
Sales
 
movements
 
breakdown:
Volume
4%
Value
8%
    
Foreign
 
Exchange
4%
    
Price
1%
    
Country/Product
 
Mix
3%

OPERATING PERFORMANCE
6
NZ$
 
millions
Dec
 
2022
Dec
 
2021 %
 
Change
vs
 
2021
Sales
 
Revenue
197.1
            
175.9
            
12%
   
Operating
 
Revenue
198.8
            
178.7
            
11%
Operating
 
Gross
 
Profit
95.6
               
86.8
               
10%
    
Operating
 
Gross
 
Margin
48%
49%
   
Expenses
 
(excl
 
Promotion
 
and
 
Marketing)
(26.9)
             
(22.0)
             
‐
22%
   
Promotion
 
and
 
Marketing
(6.5)
                
(5.2)
                
‐
25%
Operating
 
EBIT
62.2
               
59.6
               
4%
    
Operating
  
EBIT
 
%
 
of
 
Revenue
31%
33%
    
Interest
 
and
 
Tax
(22.0)
             
(20.1)
             
‐
9%
Operating
 
NPAT
40.2
               
39.5
               
2%
    
Operating
 
NPAT
 
%
 
of
 
Revenue
20%
22%
Operating
 
EBITDA
74.2
               
71.0
               
5%
    
Operating
 
EBITDA
 
%
 
of
 
Revenue
37%
40%

OPERATING PROFIT MOVEMENT – LAST YEAR
7
NZ $millions
1.
One off software-as-a-service implementation costs for new ERP system
2.
Includes headcount increase, remuneration increases, and resumption of normal sales activities post Covid-19 disruptions

IMPACT OF ‘FAIR VALUE’ ADJUSTMENTS
8
NZ$
 
millions
Dec
 
2022
Dec
 
2021 %
 
Change
vs
 
2021
Operating
 
NPAT
40.2
               
39.5
               
2%
    
Operating
 
NPAT
 
%
 
of
 
Revenue
20%
22%
    
Biological
 
Produce
 
(Grapes)
 
1
(9.6)
                
(7.1)
                
35%
    
Derivative
 
financial
 
Instruments
 
10.4
               
3.2
                 
n/m
2
Total
 
Fair
 
Value
 
Items
0.8
                 
(3.9)
               
n/m
2
    
Taxation
 
of
 
NZ
 
IFRS
 
fair
 
value
 
items
(0.3)
                
1.1
                 
n/m
2
Fair
 
Value
 
Items
 
after
 
Tax
 
0.5
                 
(2.8)
               
n/m
2
Reported
 
NPAT
40.7
               
36.7
               
11%
1.
 
Biological
 
Produce
 
(Grapes)
 
is
 
the
 
difference
 
between
 
market
 
value
 
paid
 
for
 
grapes
 
versus
 
the
 
cost
 
to
 
grow
 
grapes.
  
The
 
harvest
 
provision
 
is
 
reversed
 
and
 
only
 
recognised
 
when
 
the
 
finished
 
wine
 
is
 
sold.
  
2.
 
n/m
 
means
 
not
 
meaningful.
  

REPORTED PROFIT MOVEMENT – LAST YEAR
9
NZ $millions
1.
One off software-as-a-service implementation costs for new ERP system
2.
Includes headcount increase, remuneration increases, and resumption of normal sales activities post Covid-19 disruptions

BALANCE SHEET SUMMARY
10

NET DEBT MOVEMENT – JUNE 22 TO DEC 22
11
NZ $millions

NET DEBT OVERVIEW
12
NZ$
 
millions
December
 
2022
 
Actual
December
 
2021
 
Actual
%
 
Change
vs
 
2021
Funding
    
Operating
 
Cash
 
Flow
35.3
                   
20.2
                   
75%
    
Net
 
Debt
305.8
                
267.0
                
15%
Key
 
Ratios
   
Operating
 
Interest
 
Cover
8.94
                   
11.62
                
‐
23%
   
Equity
 
/
 
(Equity
 
+
 
Net
 
Debt)
 
%
62.9%
63.8%
‐
1%
   
Senior
 
Debt
 
Ratio
2.68
                   
2.41
                   
‐
11%

INVESTING IN GROWTH
13
During
 
the
 
year,
 
the
 
Group
 
has
 
invested
 
in
 
vineyard
 
developments
 
and
 
winery
 
expansion
 
to
 
provide
 
for
 
future
 
earnings
 
growth,
 
including:
$39.9
 
million
 
purchase
 
of
 
the
 
previously
 
leased
 
Dashwood
 
vineyard
 
in
 
Marlborough.
$30.8
 
million
 
in
 
new
 
vineyard
 
developments
 
and
 
winery
 
expansion
 
in
 
New
 
Zealand.

FULL YEAR OUTLOOK
14
The
 
Group
 
is
 
on
 
target
 
to
 
achieve
 
global
 
case
 
sales
 
for
 
the
 
full
 
year
 
of
 
3,649,000,
 
up
 
9%
 
on
 
last
 
year.
Based
 
on
 
prevailing
 
exchange
 
rates,
 
the
 
Group
 
forecasts
 
the 2023
 
Operating
 
Profit
 
guidance
 
in
 
the
 
range
 
of
 
$59
 
million
 
to
 
$62
 
million.

Thank
 
you