DGL – Interim Results to 31 December 2023

Results announcement



Results for announcement to the market
Name of issuer Delegat Group Limited
Reporting Period 6 months to 31 December 2023
Previous Reporting Period 6 months to 31 December 2022
Currency NZD
Amount (000s) Percentage change
Revenue from continuing
operations
$203,080 -3%
Total Revenue $203,080 -3%
Net profit/(loss) from continuing
operations
$33,447 -18%
Total net profit/(loss) $33,447 -18%
Interim/Final Dividend
Amount per Quoted Equity
Security
Not Applicable
Imputed amount per Quoted
Equity Security
Not Applicable
Record Date Not Applicable
Dividend Payment Date Not Applicable
Current period Prior comparable period
Net tangible assets per Quoted
Equity Security
$5.44 $5.06
A brief explanation of any of the
figures above necessary to
enable the figures to be
understood
Operating Profit from ordinary
activities after tax (Operating NPAT)

1
$37,768
Operating Profit from ordinary
activities before interest, tax, and
depreciation (Operating EBITDA)
1
$74,766
-6%


1%



Authority for this announcement
Name of person

authorised to
make this announcement
Murray Annabell
Contact person for this
announcement
Murray Annabell
Contact phone number + 64 9 359 7310
Contact email address Murray.annabell@delegat.com
Date of release through MAP

23/02/2024

Unaudited financial statements accompany this announcement.

1. Operating Performance is a non-GAAP measure and as such does not have a standardised meaning prescribed by
GAAP. It may therefore not be comparable to non-GAAP measures presented by other entities.

---

Results announcement



Results for announcement to the market
Name of issuer Delegat Group Limited
Reporting Period 6 months to 31 December 2023
Previous Reporting Period 6 months to 31 December 2022
Currency NZD
Amount (000s) Percentage change
Revenue from continuing
operations
$203,080 -3%
Total Revenue $203,080 -3%
Net profit/(loss) from continuing
operations
$33,447 -18%
Total net profit/(loss) $33,447 -18%
Interim/Final Dividend
Amount per Quoted Equity
Security
Not Applicable
Imputed amount per Quoted
Equity Security
Not Applicable
Record Date Not Applicable
Dividend Payment Date Not Applicable
Current period Prior comparable period
Net tangible assets per Quoted
Equity Security
$5.44 $5.06
A brief explanation of any of the
figures above necessary to
enable the figures to be
understood
Operating Profit from ordinary
activities after tax (Operating NPAT)

1
$37,768
Operating Profit from ordinary
activities before interest, tax, and
depreciation (Operating EBITDA)
1
$74,766
-6%


1%



Authority for this announcement
Name of person

authorised to
make this announcement
Murray Annabell
Contact person for this
announcement
Murray Annabell
Contact phone number + 64 9 359 7310
Contact email address Murray.annabell@delegat.com
Date of release through MAP

23/02/2024

Unaudited financial statements accompany this announcement.

1. Operating Performance is a non-GAAP measure and as such does not have a standardised meaning prescribed by
GAAP. It may therefore not be comparable to non-GAAP measures presented by other entities.

DELEGAT GROUP LIMITED
INTERIM REPORT 2024

CONTENTS
2
7
8
9
11
13
16
20
Chairman’s Report
Statement of Financial Performance
Statement of Other Comprehensive Income
Statement of Changes in Equity
Statement of Financial Position
Statement of Cash Flows
Notes to the Financial Statements
Directory

DELEGAT INTERIM REPORT 2024 CHAIRMAN’S REPORT
1. Operating Performance is a non-GAAP measure and as such does not have a standardised meaning prescribed by GAAP. It may therefore not be comparable to
non-GAAP measures presented by other entities.
CHAIRMAN’S REPORT 2024
On behalf of the Board of Directors of Delegat Group Limited, I am pleased to present its
operating and financial results for the six months ended 31 December 2023.
The Group presents its financial statements in accordance with the New Zealand equivalents to
International Financial Reporting Standards (NZ IFRS).
To provide further insight into the Group’s underlying operational performance, the Group has
also included in this report an Operating Performance Report. This Operating Performance
Report excludes the impact of fair value adjustments required under NZ IFRS for grapes
and derivative financial instruments. As a fully integrated winemaking and sales operation,
Operating Profit includes the fair value adjustment in respect of grapes when packaged wine is
sold rather than on harvest of the grapes, and the fair value adjustment on derivative financial
instruments when these foreign exchange contracts and interest rate swaps are realised.
The Group has included a reconciliation of Operating Profit to Reported Profit which eliminates
from each line in the Statement of Financial Performance the impact of these fair value
adjustments.
1
OPERATING PERFORMANCE
An Operating NPAT of $37.8 million was generated compared to $40.2 million for the same
period in the previous year. Operating EBIT of $62.0 million is $0.2 million lower than the same
period last year (refer to table 1).
TABLE 1 OPERATING PERFORMANCE
1
2
Dec 2023 Dec 2022 % change
NZ$ millions vs 2022
Operating Revenue
1
198.6 198.8 0%
Operating Gross Profit
2
96.1 95.6 1%
Operating Gross Margin 48% 48%
Operating Expenses
3
(34.1) (33.4) -2%
Operating EBIT
4
62.0 62.2 0%
Operating EBIT % of Revenue 31% 31%
Interest and Tax (24.2) (22.0) -10%
Operating NPAT
4
37.8 40.2 -6%
Operating NPAT % of Revenue 19% 20%
Operating EBITDA
4
74.8 74.2 1%
Operating EBITDA % of Revenue 38% 37%
Notes:
1. Operating Revenue is before fair value movements on derivative instruments (if gains).
2. Operating Gross Profit is before the net fair value movements on biological produce (harvest adjustment) and the NZ IFRS adjustments excluded in Note 1.
3. Operating Expenses are before fair value movements on derivative instruments (if losses) and any other one-off non-operating items.
4. Operating EBIT, EBITDA and NPAT are before any fair value adjustments and any other one-off non-operating items.

DELEGAT INTERIM REPORT 2024 CHAIRMAN’S REPORT
OPERATING PERFORMANCE CONTINUED
Delegat achieved Operating Revenue of $198.6 million on global case sales of 1,924,000 in
the six month period. With supply chains stabilising, distributors and retailers have reduced
inventory holdings resulting in lower replenishment orders for the year to date. As a result,
revenue is down $0.2 million on the same period last year primarily due to the impact of a 2%
decrease in global case sales, offset by favourable foreign exchange movements .
The Group’s case sales performance and foreign currency rates achieved are detailed in table 2.
Operating Gross Profit is up 1% on the same period last year. Operating expenses (before NZ
IFRS adjustments) at $34.1 million are $0.7 million higher compared to the same period in the
previous year. This is due to increased people-related costs and the unfavourable impact of
foreign exchange on offshore in-market costs.
TABLE 2 CASE SALES AND FOREIGN CURRENCY
3
Dec 2023 Dec 2022 % change
Case Sales (000s) vs 2022
UK, Ireland and Europe 579 559 4%
North America (USA and Canada) 959 1,028 -7%
Australia, NZ and Asia Pacific 386 383 1%
Total Cases 1,924 1,970 -2%

Foreign Currency Rates
GB£ 0.5046 0.5200 3%
AU$ 0.9185 0.9300 1%
US$ 0.6137 0.6301 3%
CA$ 0.8203 0.8311 1%

DELEGAT INTERIM REPORT 2024 CHAIRMAN’S REPORT
NZ IFRS FAIR VALUE ADJUSTMENTS
In accordance with NZ IFRS, the Group is required to account for certain of their assets at
‘fair value’ rather than at historic cost. All movements in these fair values are reflected in and
impact the Statement of Financial Performance. The Group records adjustments in respect of
two significant items at the half-year reporting date, as detailed in table 3.
• Harvest Provision Release (Grapes) – Inventory is valued at market value, rather than costs
incurred, at harvest. Any fair value adjustment is excluded from Operating Performance for
the year, by creating a Harvest Provision. This Harvest Provision is then released through
Cost of Sales when inventory is sold in subsequent years. This represents the reversal of
prior periods’ fair value adjustments in respect of biological produce as finished wine is sold
in subsequent years. This has resulted in an adjustment of $10.5 million for the period (31
December 2022: adjustment of $9.6 million);
• Derivative financial instruments held to hedge the Group’s foreign currency and interest rate
exposure. The mark-to-market movement of these instruments at balance date resulted in a
fair value write-up of $4.5 million (31 December 2022: write-up of $10.4 million).
TABLE 3 IMPACT OF FAIR VALUE ADJUSTMENTS
4
Notes:
1. Biological Produce (Grapes) is the difference between market value paid for grapes and 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.
Dec 2023 Dec 2022 % change
NZ$ millions vs 2022
Operating NPAT 37.8 40.2 -6%
Operating NPAT % of Revenue 19% 20%
NZ IFRS Fair Value Items
Biological Produce (Grapes)
1
(10.5) (9.6) 9%
Derivative financial Instruments 4.5 10.4 -57%
Total Fair Value Items (6.0) 0.8 n/m
2
Taxation of NZ IFRS fair value items 1.6 (0.3) n/m
2
Fair Value Items after Tax (4.4) 0.5 n/m
2
Reported NPAT 33.4 40.7 -18%

DELEGAT INTERIM REPORT 2024 CHAIRMAN’S REPORT
RECONCILIATION OF REPORTING TO OPERATING PERFORMANCE
Accounting for all fair value adjustments under NZ IFRS, the Group’s reported unaudited
financial performance for the six months ended 31 December 2023 is reconciled to Operating
Profit as detailed in table 4.
CASH FLOW
The Group generated Cash Flows from Operations of $35.8 million in the current half-year,
which is an increase of $0.5 million on the same period last year. The increase is due to lower
income tax payments for the FY23 tax returns due to deductibility of vineyard development
expenditure, offset by lower collections from customers. A total of $46.2 million was paid for
additional property, plant and equipment during the period, including vineyard developments
in New Zealand, and development of the Hawke’s Bay and Marlborough wineries, which
will provide earnings growth into the years ahead. The Group distributed $20.2 million to
shareholders in dividends. Net proceeds from borrowings of $32.0 million were drawn down
during the six month period.
The Group is well positioned to fund its current operations as well as future capital investment
in both New Zealand and Australia. The Group’s Net Debt at 31 December 2023 amounted to
$352.3 million, an increase of $46.5 million compared with the last half-year and well within the
Group’s long-term bank debt facilities of $420 million.
TABLE 4 RECONCILIATION OF REPORTING TO OPERATING PERFORMANCE
5
December 2023December 2022
Notes:
1. EBIT means earnings before interest and tax.
Operating Fair Value Reported Operating Fair Value Reported
NZ$ millions Adjustment Adjustment
Revenue 198.6 4.5 203.1 198.8 10.4 209.2
Cost of Sales (102.5) (10.5) (113.0) (103.2) (9.6) (112.8)
Gross Profit 96.1 (6.0) 90.1 95.6 0.8 96.4
Operating Expenses (34.1) – (34.1) (33.4) – (33.4)
EBIT
1
62.0 (6.0) 56.0 62.2 0.8 63.0
Interest and Tax (24.2) 1.6 (22.6) (22.0) (0.3) (22.3)
N PAT
2
37.8 (4.4) 33.4 40.2 0.5 40.7

EBIT
1
62.0 (6.0) 56.0 62.2 0.8 63.0
Depreciation
and amortisation 12.8 – 12.8 12.0 – 12.0
EBITDA
3
74.8 (6.0) 68.8 74.2 0.8 75.0
2. NPAT means net profit after tax.
3. EBITDA means earnings before interest, tax, depreciation and amortisation.

DELEGAT INTERIM REPORT 2024 CHAIRMAN’S REPORT
LOOKING FORWARD
The Group maintains its 2024 Operating Profit guidance in the range of $57.0 million to
$61.0 million.
JIM DELEGAT
CHAIRMAN
6

DELEGAT GROUP LIMITED AND SUBSIDIARIES. FOR THE SIX MONTHS ENDED 31 DECEMBER 2023
Unaudited
Dec 2023
6 Months
$000
Audited
June 2023
12 Months
$000
Unaudited
Dec 2022
6 Months
$000
Revenue 203,080 381,442 209,158
Profit before finance costs 55,970 104,477 62,965
Finance costs 9,608 14,726 6,959
Profit before income tax 46,362 89,751 56,006
Income tax expense 12,915 24,926 15,278
Profit for the Period attributable to

Shareholders of the Parent Company 33,4 47 64,825 40,728

Earnings Per Share
– Basic and fully diluted earnings per share (cents per share) 33.07 64.10 40.27
The accompanying notes form part of these financial statements
STATEMENT OF FINANCIAL PERFORMANCE
7

DELEGAT GROUP LIMITED AND SUBSIDIARIES. FOR THE SIX MONTHS ENDED 31 DECEMBER 2023
Unaudited
Dec 2023
6 Months
$000
Audited
June 2023
12 Months
$000
Unaudited
Dec 2022
6 Months
$000
Profit after income tax 33,4 47 64,825 40,728
Other comprehensive income that may

subsequently be classified to the profit and loss:
– Translation of foreign subsidiaries (2,006) 311 (2,400)
– Net gain on hedge of a net investment 303 572 1,122
– Income tax relating to components

of other comprehensive income (85) (160) (314)
Total comprehensive income for the period, net of tax 31,659 65,548 39,136

Comprehensive income attributable to
Shareholders of the Parent Company 31,659 65,548 39,136
The accompanying notes form part of these financial statements
STATEMENT OF OTHER COMPREHENSIVE INCOME
8

DELEGAT GROUP LIMITED AND SUBSIDIARIES. FOR THE SIX MONTHS ENDED 31 DECEMBER 2023
Share
Capital
$000
Foreign
Currency
Translation
Reserve
$000
Retained
Earnings
$000
Total
Equity
$000
Audited balance at 30 June 2023 49,815 (74) 495,030 544,771
Changes in equity for the period ended 31 December 2023
Other comprehensive income
– Translation of foreign subsidiaries – (2,006) – (2,006)
– Net gain on hedge of a net investment – 303 – 303
– Income tax relating to components of other comprehensive income – (85) – (85)
Total other comprehensive income – (1,788) – (1,788)
– Net profit for the period – – 33,447 33,4 47
Total comprehensive income for the period – (1,788) 33,447 31,659
Equity Transactions
– Dividends paid to shareholders – – (20,242) (20,242)
Unaudited balance at 31 December 2023 49,815 (1,862) 508,235 556,188
FOR THE PERIOD ENDED 31 DECEMBER 2023 (UNAUDITED)
Share
Capital
$000
Foreign
Currency
Translation
Reserve
$000
Retained
Earnings
$000
Total
Equity
$000
Audited balance at 30 June 2022 49,815 (797) 450,448 499,466
Changes in equity for the year ended 30 June 2023
Other comprehensive income
– Translation of foreign subsidiaries – 311 – 311
– Net gain on hedge of a net investment – 572 – 572
– Income tax relating to components of other comprehensive income – (160) – (160)
Total other comprehensive income – 723 – 723
– Net profit for the year – – 64,825 64,825
Total comprehensive income for the year – 723 64,825 65,548
Equity Transactions
– Dividends paid to shareholders – – (20,243) (20,243)
Audited balance at 30 June 2023 49,815 (74) 495,030 544,771
FOR THE YEAR ENDED 30 JUNE 2023 (AUDITED)
The accompanying notes form part of these financial statements
STATEMENT OF CHANGES IN EQUITY
9

DELEGAT GROUP LIMITED AND SUBSIDIARIES. FOR THE SIX MONTHS ENDED 31 DECEMBER 2023
Share
Capital
$000
Foreign
Currency
Translation
Reserve
$000
Retained
Earnings
$000
Total
Equity
$000
Audited balance at 30 June 2022 49,815 (797) 450,448 499,466
Changes in equity for the period ended 31 December 2022
Other comprehensive income
– Translation of foreign subsidiaries – (2,400) – (2,400)
– Net gain on hedge of a net investment – 1,122 – 1,122
– Income tax relating to components of other comprehensive income – (314) – (314)
Total other comprehensive income – (1,592) – (1,592)
– Net profit for the period – – 40,728 40,728
Total comprehensive income for the period – (1,592) 40,728 39,136
Equity Transactions
– Dividends paid to shareholders – – (20,243) (20,243)
Unaudited balance at 31 December 2022 49,815 (2,389) 470,933 518,359
FOR THE PERIOD ENDED 31 DECEMBER 2022 (UNAUDITED)
The accompanying notes form part of these financial statements
STATEMENT OF CHANGES IN EQUITY CONTINUED
10

DELEGAT GROUP LIMITED AND SUBSIDIARIES. AS AT 31 DECEMBER 2023
Unaudited
Dec 2023
$000
Audited
June 2023
$000
Unaudited
Dec 2022
$000
Equity
Share capital 49,815 49,815 49,815
Foreign currency translation reserve (1,862) (74) (2,389)
Retained earnings 508,235 495,030 470,933
Total Equity 556,188 544,771 518,359

Liabilities
Current Liabilities
Trade payables and accruals 43,478 52,211 40,568
Derivative financial instruments – 4,009 1,178
Income tax payable 10,699 1,955 –
Lease liability 4,939 5,231 5,022
59,116 63,406 46,768
Non-Current Liabilities
Deferred tax liability 41,763 40,785 42,219
Derivative financial instruments – 9 75
Interest-bearing loans and borrowings (secured) 357,553 326,008 313,904
Lease liability 91,010 88,328 88,652
490,326 455,130 444,850
Total Liabilities 549,442 518,536 491,618
Total Equity and Liabilities 1,105,630 1,063,307 1,009,977

STATEMENT OF FINANCIAL POSITION
The accompanying notes form part of these financial statements
11

DELEGAT GROUP LIMITED AND SUBSIDIARIES. AS AT 31 DECEMBER 2023
Unaudited
Dec 2023
$000
Audited
June 2023
$000
Unaudited
Dec 2022
$000
Assets
Current Assets
Cash and cash equivalents 5,296 6,610 8,134
Trade and other receivables 86,024 62,478 64,773
Derivative financial instruments 5,538 2,605 4,809
Income tax receivable – – 1,931
Inventories 151,187 209,755 139,956
Biological work in progress 56,457 14,710 51,605
304,502 296,158 271,208
Non-Current Assets
Property, plant and equipment 720,661 686,002 657,248
Right-of-use assets 73,553 71,457 71,885
Intangible assets 6,416 6,721 6,814
Derivative financial instruments 498 2,969 2,822
801,128 767,149 738,769
Total Assets 1,105,630 1,063,307 1,009,977
For, and on behalf of, the Board who authorised the issue of the financial statements on 23 February 2024.
JN Delegat
Chairman
The accompanying notes form part of these financial statements
SD Carden
Managing Director
STATEMENT OF FINANCIAL POSITION CONTINUED
12

DELEGAT GROUP LIMITED AND SUBSIDIARIES. FOR THE SIX MONTHS ENDED 31 DECEMBER 2023
Unaudited
Dec 2023
6 Months
$000
Audited
June 2023

12 Months
$000
Unaudited
Dec 2022
6 Months
$000
Operating Activities
Cash was provided from
Receipts from customers 174,888 367,963 191,053
Net GST received 2,776 – 688
17 7, 6 6 4 367,963 191,741
Cash was applied to
Payments to suppliers and employees 130,263 274,245 138,564
Net GST paid – 1,596 –
Net interest paid 8,389 10,516 3,090
Net income tax paid 3,258 21,890 14,828
141,910 308,247 156,482
Net Cash Inflows from Operating Activities 35,754 59,716 35,259
Investing Activities
Cash was provided from
Proceeds from sale of property, plant and equipment 46 202 2
Dividends received 1 46 17
47 248 19
Cash was applied to
Purchase of property, plant and equipment 43,351 62,857 30,366
Purchase of intangible assets 35 332 485
Capitalised interest paid 2,784 3,054 843
46,170 66,243 31,694
Net Cash Outflows from Investing Activities (46,123) (65,995) (31,675)

The accompanying notes form part of these financial statements
STATEMENT OF CASH FLOWS
13

DELEGAT GROUP LIMITED AND SUBSIDIARIES. FOR THE SIX MONTHS ENDED 31 DECEMBER 2023
Unaudited
Dec 2023
6 Months
$000
Audited
June 2023

12 Months
$000
Unaudited
Dec 2022
6 Months
$000
Financing Activities
Cash was provided from
Proceeds from borrowings 52,154 85,716 77,097
52,154 85,716 77,097
Cash was applied to
Dividends paid to shareholders 20,225 20,231 20,216
Borrowing facility fees – 128 72
Repayment of borrowings 20,137 12,467 14,725
Repayment of lease liability 2,615 45,053 42,476
42,977 7 7, 8 7 9 7 7, 4 8 9
Net Cash Inflows/(Outflows) from Financing Activities 9,177 7, 8 3 7 (3 9 2)

Net (Decrease)/Increase in Cash Held (1,192) 1,558 3,192
Cash and cash equivalents at beginning of the year 6,610 5,117 5,117
Effect of exchange rate changes on

foreign currency balances (122) (65) (175)
Cash and Cash Equivalents at End of the Period 5,296 6,610 8,134

The accompanying notes form part of these financial statements
STATEMENT OF CASH FLOWS CONTINUED
14

DELEGAT GROUP LIMITED AND SUBSIDIARIES. FOR THE SIX MONTHS ENDED 31 DECEMBER 2023
Unaudited
Dec 2023
6 Months
$000
Audited
June 2023
12 Months
$000
Unaudited
Dec 2022
6 Months
$000
Reconciliation of Profit for the Period with

Cash Flows from Operating Activities:
Reported profit after tax 33,4 47 64,825 40,728
Add/(deduct) items not involving cash flows
Depreciation and amortisation expense 12,794 23,611 11,990
Other non-cash items (1,669) 676 (1,806)
Net loss on disposal of assets 60 67 97
Movement in derivative financial instruments (4,480) (5,552) (10,374)
Movement in deferred tax liability 978 7,785 9,219
7, 6 8 3 26,587 9,126

Movement in working capital balances are as follows:
Trade payables and accruals (8,733) 10,775 (868)
Trade and other receivables (23,546) (8,349) (10,644)
Inventories 58,568 (26,772) 43,027
Biological work in progress (41,747) (1,006) (37,901)
Income tax payable/receivable 8,74 4 (4,641) (8,527)
Add items classified as investing

and financing activities
Capital purchases included

within trade payables and inventories 1,338 (1,703) 318
(5,376) (31,696) (14,595)
Net Cash Inflows from Operating Activities 35,754 59,716 35,259

Reconciliation of movement in Net Debt:
Opening balance at beginning of the year 319,398 248,660 248,660
Per statement of cash flows:
– Proceeds from borrowings 32,017 73,249 62,372
– Borrowing facility fees – (128) (72)
– Net decrease/(increase) in cash held 1,192 (1,558) (3,192)
Foreign exchange movement (500) (1,088) (2,129)
Other non-cash movements 150 263 131
Closing balance at end of the Period 352,257 319,398 305,770
The accompanying notes form part of these financial statements
STATEMENT OF CASH FLOWS CONTINUED
15

DELEGAT GROUP LIMITED AND SUBSIDIARIES. FOR THE SIX MONTHS ENDED 31 DECEMBER 2023
1. GENERAL INFORMATION
REPORTING ENTITY
The financial statements presented are those of Delegat Group Limited and its subsidiaries (the Group). Delegat
Group Limited is a company limited by shares, incorporated and domiciled in New Zealand and registered under the
Companies Act 1993. The Parent shares are publicly traded on the New Zealand Stock Exchange.
The financial statements for the Group for the six months ended 31 December 2023 were authorised for issue in
accordance with a resolution of the Directors on 23 February 2024.
BASIS OF PREPARATION
The interim financial statements have been prepared in accordance with Generally Accepted Accounting Practice
in New Zealand (NZ GAAP), the requirements of the Financial Markets Conduct Act 2013, and NZ IAS 34: Interim
Financial Reporting. Accounting policies applied in these interim financial statements comply with New Zealand
equivalents to International Financial Reporting Standards, and other applicable Financial Reporting Standards

(NZ IFRS) as applicable to the Group as a profit-oriented entity.
The interim financial statements are presented in New Zealand Dollars, rounded to the nearest thousand. They are
prepared on a historical cost basis except for derivative financial instruments and biological produce which have
been measured at fair value.
The preparation of the interim financial statements in conformity with NZ IAS 34 requires the Group to make
judgements, estimates and assumptions that affect the application of policies and reported amounts of assets and
liabilities, income and expenses. The estimates and associated assumptions are based on historical experience and
various other factors that are believed to be reasonable under the circumstances. Actual results may vary from these
estimates. The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting
estimates are recognised in the period in which the estimates are revised if the revision affects only that period, or in
the period of revision and future periods if the revision affects both current and future periods.
DERIVATIVE FINANCIAL INSTRUMENTS
The Group uses derivative financial instruments such as forward currency contracts and options to economically
hedge its risk associated with foreign currency and interest rate swaps to manage interest rate risk. Such financial
instruments are initially recognised at fair value on the date on which a derivative contract is entered into, and
are subsequently remeasured to fair value at balance date. In estimating the fair value of the derivative financial
instruments the Group uses level 2 inputs of the fair value measurement hierarchy. The Group’s derivative financial
instruments fall into level 2 of the fair value measurement hierarchy because their fair value is determined using
inputs, other than quoted prices included in level 1, that are observable for the asset or liability, either directly as
prices or indirectly (derived from prices). The fair values are derived through valuation techniques that maximise the
use of observable market data where it is available and rely as little as possible on entity specific estimates.
CHANGES IN ACCOUNTING POLICIES
The accounting policies adopted are consistent with those of the previous financial year. Refer to the published
financial statements for the year ended 30 June 2023 for a complete listing of the Group accounting policies.
NOTES TO THE FINANCIAL STATEMENTS
16

DELEGAT GROUP LIMITED AND SUBSIDIARIES. FOR THE SIX MONTHS ENDED 31 DECEMBER 2023
2. SEGMENTAL REPORTING
The Group reviews its operational performance based upon the management and the geographic areas in which
their customers are based. Financial information which is available to management in order to assess segment
performance and investment opportunities is presented on the same basis. In accordance with NZ IFRS 8: Operating
Segments this forms the basis of presentation for Segment Reporting and is the format adopted below:
– Delegat Limited (Delegat) is party to vineyard leases and has interests in freehold land and winery infrastructure
which allows the company to grow, harvest and make finished wine to be marketed, distributed and sold into the
Super Premium wine markets. Delegat sells and markets its product through a combination of subsidiary companies
based overseas or to customers and distributors directly in the New Zealand, Canadian, Asian and Pacific Island
markets. Delegat Australia Pty Limited, Delegat Europe Limited and Delegat USA, Inc. act as distributors and
assist in the marketing of product in their respective geographic regions. Wines are sold all year round to all regions
and the Group considers there is no significant variation in revenues throughout the year.
The Group implements appropriate transfer pricing regimes within the operating segments on an arm’s length basis
in a manner similar to transactions with third parties.
Management monitors the operating results of its business units separately for the purpose of making resource
allocations and performance assessments. Segment performance is evaluated based on operating profit or loss,
which may be measured differently from operating profit or loss in the consolidated financial statements as segment
reporting is based upon internal management reports. The main differences are a result of some deferred tax
balances being recognised upon consolidation not being allocated to individual subsidiaries. Also intercompany
stock margin eliminations are managed on a group basis and are not allocated to operating segments.
For the 6 months
ended
31 December 2023
Delegat
Limited

$000
Delegat
Australia
Pty Ltd
$000
Delegat
Europe
Limited
$000
Delegat
USA, Inc.

$000
Other
Segments
10

$000
Eliminations
and
Adjustments
11

$000
6 months
ended
31 December
2023
$000
Operating income
External sales
2,8
39,578 34,671 61,413 110,823 4,171 (52,429) 198,227
Internal sales 178,094 – – – 3,192 (181,286) –
Unrealised foreign

exchange gain/(loss) (1,793) – 42 – 2 2,076 327
Fair value gain on derivative

financial instruments 4,480 – – – – – 4,480
Dividend revenue 1 – – – 21 – 22
Interest revenue 15 4 2 – 3 – 24
Total segment revenues
1
220,375 34,675 61,457 110,823 7,389 (231,639) 203,080

Operating expenses
Interest expense
3
8,488 19 14 10 1,077 – 9,608
Depreciation and amortisation
4
11,319 284 79 278 834 – 12,794
Income tax expense
5
10,453 205 465 429 139 1,224 12,915

Segment profit 26,695 467 1,393 1,357 388 3,147 33,4 47

Assets
Segment assets
6
1,033,118 15,798 53,688 37,221 111,794 (145,989) 1,105,630
Capital expenditure
7
44,602 2 17 8 185 – 44,814

Segment liabilities 542,067 9,364 38,494 12,502 42,413 (95,398) 549,442

NOTES TO THE FINANCIAL STATEMENTS CONTINUED
17

DELEGAT GROUP LIMITED AND SUBSIDIARIES. FOR THE SIX MONTHS ENDED 31 DECEMBER 2023
For the 6 months
ended
31 December 2022
Delegat
Limited

$000
Delegat
Australia
Pty Ltd
$000
Delegat
Europe
Limited
$000
Delegat
USA, Inc.

$000
Other
Segments
10

$000
Eliminations
and
Adjustments
11

$000
6 months
ended
31 December
2022
$000
Operating income
External sales
2,9
38,164 32,991 54,237 122,124 3,118 (52,514) 198,120
Internal sales 190,527 – – – 2,515 (193,042) –
Unrealised foreign

exchange gain/(loss) (482) – (246) – 1 1,335 608
Fair value gain on derivative

financial instruments 10,374 – – – – – 10,374
Dividend revenue 17 – – – 86,058 (86,058) 17
Interest revenue 28 3 – – 8 – 39
Total segment revenues
1
238,628 32,994 53,991 122,124 91,700 (330,279) 209,158

Operating expenses
Interest expense
3
6,143 21 5 23 767 – 6,959
Depreciation and amortisation
4
10,372 310 73 277 958 – 11,990
Income tax expense
5
14,018 195 322 1,343 58 (658) 15,278

Segment profit/(loss) 35,924 445 1,365 4,649 86,094 (87,749) 40,728

Assets
Segment assets
6
945,353 15,997 52,177 31,385 131,442 (166,377) 1,009,977
Capital expenditure
7
31,126 3 – 33 256 – 31,418

Segment liabilities 507,161 10,579 37,795 5,748 43,015 (112,680) 491,618
1. Intersegment revenues are eliminated on consolidation. Intercompany profit margins are also eliminated.
2. External sales revenue includes various payments to customers for volume discounts, rebates and other promotional support.
For volume discounts, rebates and other promotional support not invoiced at 30 June 2023 the Group recognised accruals of
$25,719,000 (30 June 2022: $21,458,000). During the six months ended 31 December 2023 $195,000 of additional expense has
been incurred (31 December 2022: charge of $382,000).
3. Interest expense is net of any interest capitalised to long-term assets and inventory. During the period $2,784,000 (31 December
2022: $843,000) was capitalised to long-term assets. During the period $2,400,000 (31 December 2022: $2,285,000) was
capitalised to inventory.
4. Depreciation expense presented above is gross of $10,670,000 (31 December 2022: $10,138,000), which has been included
within inventory.
5. Segment income tax expense does not include the deferred tax impacts of temporary differences arising from intercompany
stock margin eliminations or fair value adjustments resulting from the purchase of subsidiary companies as these are managed
on a group level.
6. Segment assets include the value of investments and loan balances for subsidiaries which reside in Delegat Limited however do
not include the effects of stock margin eliminations for stock on hand in subsidiaries.
7. Capital expenditure consists of additions of property, plant and equipment inclusive of capitalised interest. Capital expenditure
is included within each of the reported segment assets noted above.
8. For the six months ended 31 December 2023 Delegat USA, Inc. had a single customer which comprised 10% or more of Group
sales amounting to $53,823,000.
9. For the six months ended 31 December 2022 Delegat USA, Inc. had a single customer which comprised 10% or more of Group
sales amounting to $53,487,000.
10. Other segments’ assets include non-current assets of Barossa Valley Estate Pty Limited of $45,280,000 (31 December 2022:
$45,865,000) which are located in Australia.
11. The eliminations and adjustments of segment profit, assets and liabilities relate to intercompany transactions and balances
which are eliminated on consolidation.
2. SEGMENTAL REPORTING (CONTINUED)
NOTES TO THE FINANCIAL STATEMENTS CONTINUED
18

DELEGAT GROUP LIMITED AND SUBSIDIARIES. FOR THE SIX MONTHS ENDED 31 DECEMBER 2023
3. EXPENSES
Expenses by function have been categorised as follows:
Unaudited
Dec 2023
6 Months
$000
Audited
June 2023
12 Months
$000
Unaudited
Dec 2022
6 Months
$000
Cost of sales 113,016 211,634 112,749
Selling, marketing and promotion expenses 24,735 45,837 23,350
Corporate governance expenses 750 1,405 684
Administration expenses 8,609 18,089 9,410

4. ACQUISITION AND DISPOSAL OF ASSETS
During the six months ended 31 December 2023 the Group incurred total capital expenditure of $44,816,000
(31 December 2022: $31,418,000). During the six months ended 31 December 2023 the Group disposed of property,
plant and equipment with a net book value of $107,000 (31 December 2022: $252,000).
5. CAPITAL COMMITMENTS
The estimated capital expenditure contracted for at 31 December 2023 but not provided for is $32,753,000
(31 December 2022: $44,421,000).
NOTES TO THE FINANCIAL STATEMENTS CONTINUED
19

DELEGAT GROUP LIMITED AND SUBSIDIARIES. FOR THE SIX MONTHS ENDED 31 DECEMBER 2023
Directors
Jakov Nikola Delegat
Rosemari Suzan Delegat
Steven David Carden
Alan Trevor Jackson
Gordon Neil MacLeod
Phillipa Margaret Muir
Registered Office
Level 31, 15 Customs Street West
Auckland 1010
PO Box 91681
Victoria Street West
Auckland 1142
Solicitors
Heimsath Alexander
Level 1, Shed 22, Prince’s Wharf
147 Quay Street
PO Box 105884
Auckland 1143
Auditors
Deloitte
Deloitte Centre, Levels 15-20, 1 Queen Street
Auckland 1010
Private Bag 115033
Shortland Street
Auckland 1140
Share Registrar
Computershare Investor Services Limited
Private Bag 92119
Auckland 1142
Level 2, 159 Hurstmere Road
Takapuna
Auckland 0622
Managing your shareholding online:
To change your address, update your payment
instructions and to view your registered details
including transactions please visit
www.investorcentre.com/NZ
General enquiries can be directed to:
enquiry@computershare.co.nz
Private Bag 92119
Auckland 1142
Telephone:
+64 9 488 8777
Facsimile:
+64 9 488 8787
Please assist our registry by quoting your CSN or
shareholder number.
DIRECTORY
20