After 12 months of focused effort to boost cash, strengthen its balance sheet, and reduce costs, the wine group’s management has declared Australian Vintage a “stronger, more agile business.”
Despite these operational improvements, the company reported widening annual losses for the fiscal year ending in June, driven by an inventory impairment charge, restructuring costs, and a strengthening Australian dollar.
Revenue for the owner of the McGuigan brand edged up 0.4%, as growth in the second half of the year compensated for weaker sales in the first six months.
The company reported significant improvements in cash flow, emphasizing that it had prioritized cash generation as a primary indicator of the business’s underlying health and performance.
In a stock-exchange filing, Australian Vintage described the 2025/26 financial year as “a year of significant transformation” for the business.
The company stated that through a disciplined focus on cash generation, cost optimization, and strategic brand acquisitions and innovation—including the successful launch of Poco Vino and other new brands—the group had strengthened its portfolio, streamlined its cost base, and enhanced operational performance.
Poco Vino, a single-serve wine brand packaged in 187ml glass tubes, achieved global sales of over two million units by the end of June, the company reported.
“These initiatives have positioned AVG as a stronger, more agile business, well-placed to deliver sustainable growth and improved profitability in the years ahead,” Australian Vintage added.
With these foundations established, AVG expects to achieve a net positive cash position for the full FY27 financial year, reducing its debt for the first time in years while accelerating the growth of global innovations like Poco Vino and strategic acquisitions.
Australian Vintage, which also markets brands such as MadFish, reported full-year revenue of A$258 million, up slightly from A$257 million the previous year. The company noted that second-half revenue grew by 2%.
Gross profit fell to A$31.9 million, down from A$69.4 million a year ago, partly due to the impairment charge.
Operating cash flow reached A$4 million, a significant turnaround from a negative A$8 million a year earlier. The company noted this was the first time the metric had been positive since the 2022 financial year, which had benefited from the Covid-19 pandemic.
Although free cash flow remained negative at A$14 million, it represented an improvement from negative A$19 million a year earlier. Excluding one-off investments of A$16 million, the company reported an “underlying” free cash flow of A$2 million, compared to negative A$13 million in the prior year.
Net debt stood at A$89 million, slightly below its guidance of A$90 million but up from A$75 million a year earlier. The group secured a new financing deal during the fiscal year.
The company’s results included a A$27 million impairment charge, a strategic move designed to “ensure all legacy inventory is cleared” and transition the company to an “in-balance inventory holding.”
The company stated: “Excess capital tied up in bulk wine inventory will be swiftly recycled into growing our innovative brand portfolio and repaying debt in FY27.”
The business stated it “forecasts no further material inventory impairments.”
Australian Vintage recorded a net loss after tax of A$64 million, a significant increase from the A$6 million loss reported twelve months prior.
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