Delegat’s Gains Most in Eight Months on 61% Profit Increase

Jim Delegat, managing director of Delegat Group

In the eight months in Wellington trading, Delegat's Group Ltd., New Zealand's biggest publicly traded wine maker, gained the most, subsequent to reporting a 61 percent surge in full-year profit.

In the year ended June 30, Delegat's net income was as much as NZ$31 million ($20 million), up from NZ$19.2 million a year earlier. This was confirmed by the Auckland-based company itself, which considered preliminary accounts.

Delegat's said: "Improved earnings were driven by strong fourth quarter sales and gains on foreign exchange contracts. A jump was seen by 4.9% in the stock."

Last year, Delegat's which owns the Oyster Bay brand, accounted for about 14 percent of New Zealand's wine exports. In order to maintain quality and prevent a glut amid good growing conditions and slowing export markets, growers pruned the 2009 crop heavily.

The company said: "Delegat's harvested 24,268 metric tons of grapes in the latest season, 2 percent less than forecast and 9 percent less than a year earlier. Profit before interest, tax, depreciation and amortization rose as much as 18 percent to NZ$65 million."