AVG Australian Vintage Ltd

[winner69]

For value hunters good report on AVG

Was from April last year but seems even more compelling now…..once the market sorts itself out and stocks like this start trending upwards

https://wentworthwilliamson.com.au/insights/an-under-the-radar-asx-beverage-bargain/

[nztx]

Loads of rain lately, also bushfires etc in OZ .. likely effects of these more recently ?

Dec 22 - completion of Sale & Leaseback of Commercial Vineyards - why ?

2.12.22 Announcement:

https://cdn-api.markitdigital.com/apiman-gateway/ASX/asx-research/1.0/file/2924-02607900-2A1418130?access_token=83ff96335c2d45a094df02a206a 39ff4


This deal unlocks significant value from our balance sheet that allows us, in very challenging market conditions, to pay down debt, to continue to invest in our brands, and consider higher margin acquisition opportunities. This deal helps underwrite the guidance provided at our AGM and allows us to continue to grow market share globally, underpinning our strategic plan.”

From Annual Report released 23.11.22:


It is too early to comment on the upcoming vintage especially considering the abnormal wet weather on the east coast and the potential impact on flood events across the Murray-Darling and Riverland
regions. Flood peaks have occurred and are expected to linger over the coming months.


The Murray is still in peak flood right now, as vast amounts of slow moving water move towards the sea

Further ongoing exposure to Weather Events in future ?

NZ & Oz have experienced unseasonal Rainfall events with further on the radar


4.5.22 Trading Update:

https://cdn-api.markitdigital.com/apiman-gateway/ASX/asx-research/1.0/file/2924-02518252-2A1372150?access_token=83ff96335c2d45a094df02a206a 39ff4



Despite a tough UK market, we continue to outperform, growing share, against a backdrop of
significant global freight disruption and a total market disrupted in H1 by labour and driver
shortages

Tough just became Inflation Ravaged & Really Rough in UK many might imagine

Trading in most of Europe would have become increasingly tougher with high energy costs & inflation

North America & UK: Hit by new Covid variant waves in recent times


Being able to produce product may be one thing, but selling it could be quite different IMO


A 9:10 stock consolidation (Jul 21) on the upwards of recent SP peak (before then declining) has not seen a lot of improvement in DPS payout


Discl: Had some of these some time ago and exited the holding

The global economic conditions present now enthuse me even less, than when I had a parcel of these onboard

At the mercy of the elements & volatile global markets - I would put this one on high risk rating
if as has been seen de-risking & selling the acreage is to be thrown at troubled markets in unsure times..

[Ricky-bobby]

I would be very weary of Aussie wine stocks… I was over in Aus at a conference in June and the industry was a mess due to China tariffs. I can buy Aussie Shiraz on the bulk market for 60 cents per litre… the small producers are still doing ok due to domestic sales but the larger guys especially in the river lands are battling as it mainly all bulk international sales. Accolade are paying growers to mothball vineyards! Anyway just a heads up.