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ericlin10
19-12-2006, 11:39 AM
It was down 5 percent in the noon with out any news I wonder what happen to it

winner69
19-12-2006, 12:25 PM
quote:Originally posted by ericlin10

It was down 5 percent in the noon with out any news I wonder what happen to it


down because the punter with 50,000 to sell had to accept 225 to get rid of them .... the cost of low liquidity in a stock .... not saying he was desperate to sell

Lawso
19-12-2006, 01:31 PM
I'm just getting interested in this stock - and not solely because I heard about the very tasty wine-tasting at the agm recently. (Memories of CIL/Montana in the good old days, when we all walked away with gift bottles in our hands!)
Were any STers at the agm? I'd be interested in anyone's thoughts/comments on DGL as a medium/long term hold. I note the div yield is negligible and the P/E abnormally high.

COLIN
09-03-2007, 12:25 PM
Why the sudden 9% upwards leap today, on relatively good volume (number of trades, and value) for a normally thinly traded stock such as this, and on the present cautious market?
Perhaps the market expects an increase in wine consumption as people try and drown their sorrows following Allan Bollard's determined attempt to deflate house prices!!!

COLIN
09-03-2007, 08:43 PM
Obviously none of you take much of an interest in this stock, and I appear to have been talking to myself, but at least the NZX was sufficiently alerted to raise a formal enquiry and got an answer - i.e. a good harvest predicted and also a JB Were positive report.
What does surprise me in these situations is that so many holders then see fit to dump their shares!

Zaphod
10-03-2007, 05:10 PM
quote:Originally posted by Lawso

I'm just getting interested in this stock - and not solely because I heard about the very tasty wine-tasting at the agm recently. (Memories of CIL/Montana in the good old days, when we all walked away with gift bottles in our hands!)
Were any STers at the agm? I'd be interested in anyone's thoughts/comments on DGL as a medium/long term hold. I note the div yield is negligible and the P/E abnormally high.


I unfortunately was not able to attend the AGM and subsequently sample the wine, but I can tell you that we were also offered heavily discounted product late last year of which I heartily partook. :D

The company has certainly performed well thus far, meeting (actually, exceeding) their last two annual report predictions. With a PE of 29x expectations are high, however I am not sure whether this is typical of Wine industry in general.

I'd be interesting in hearing people's comments on whether they believe that ever increasing water scarcity problems in Australia, may considerably help NZ wine producers.

Steve
11-03-2007, 08:24 AM
quote:Originally posted by Zaphod

I'd be interesting in hearing people's comments on whether they believe that ever increasing water scarcity problems in Australia, may considerably help NZ wine producers.

The South Island already has its own water issues when it comes to irrigation. Supply is being constrained by the likes of the RMA while demand is increasing...

Zaphod
11-03-2007, 09:32 AM
quote:
The South Island already has its own water issues when it comes to irrigation. Supply is being constrained by the likes of the RMA while demand is increasing...


Yes, we certainly have similar problems in areas in NZ, however we are still (realatively speaking) in a much better position than Australia in that respect. I believe the key to increasing NZ wine sales will be to specifically target higher per-case prices by selling quality product.

KJ
12-03-2007, 11:52 AM
quote:Originally posted by Lawso

I'm just getting interested in this stock - and not solely because I heard about the very tasty wine-tasting at the agm recently. (Memories of CIL/Montana in the good old days, when we all walked away with gift bottles in our hands!)
Were any STers at the agm? I'd be interested in anyone's thoughts/comments on DGL as a medium/long term hold. I note the div yield is negligible and the P/E abnormally high.


Lawso-only just noticed this-yes I did go to AGM and thought it an excellent presentation.My original problem with DGL was believing the step in profit in one yr from $4m to $13.8m.

I added as I got more comfortable with this & I think the market now believes this will happen as reflected in the recent SP strength.
Remember that their $13.8m budget used an exchange rate of UK 0.376-its biggest market by far.
Indications are that it could reach NPAT of $15 to $16m for the full year -a PE of 15.Time will tell.

soltrader
22-08-2007, 06:40 PM
Any got any thoughts on this wine company?

tobo
26-08-2007, 11:00 AM
Any got any thoughts on this wine company?
Do you mean general thoughts about their business strategy, or about what happening right now?
SP been meandering upwards through the recent meltdown.
-US exporter so exchange-rate dependant, but a premium product so not such knife-edge margins that threatren viabilty of exporting strategy.
-Internationally, some wine gluts (EU). But not at premium end of the market. And DGL trying to make it all about the brand (at 2 levels: NZ; Oyster Bay)
-Will the US ec slowdown affect premium-end american wine drinkers ability to drink what they want?
-Globally a little fish in a big sea. Typical kiwi - does it's homework and punches above it's weight.
Hold.

soltrader
26-08-2007, 10:33 PM
Thanks. I bought into the ipo and still holding.
But I'm not sure how much upside potential is still there.
Was thinking maybe it's time to take the profit when the share price doubles.

gravy train
28-04-2008, 08:07 PM
Looking at the market announcements this year there have been two senior resignations at Delegat's - GM Strategy, announced 21 Apr, and MD Northen Hempisphere, announced 29 Jan.

I've also noticed that my local Foodtown have recently started selling Oyster Bay.

When put together, at face value this could suggest inconsistency with Delegat's emphasis on growth in the global super premium wine market.

Am I reading too much into this?.

Footsie
19-02-2009, 02:18 PM
a very muted response to a very solid result.
probably the best on the NZX at present in terms of growth

ratkin
19-02-2009, 03:16 PM
Big picture shows a global wine lake , far too much being produced .
Delgats say the quality end dosent suffer from this , but consumers going to be very price conscious in these times and are likely to head straight for the bargain bins.
Restaurant sales also likely to come under pressure

Footsie
19-02-2009, 08:03 PM
alcohol is the last to go..... in fact it never goes.

I know from my current situation my drinking hasnt changed... maybe increased

but im not buying new clothes or TV's etc.

also more folk likely to grab a bottle and have a few drinks at home.

if yuo were going to see a flattening off it would have already happened.

Footsie
21-07-2009, 09:42 AM
Jim delivers again.

Whilst not a great "recovery " stock. Its been a solid performer through the recession.

With 30mNPAT this year . Div yield of over 6% p/e of 7x it's pretty reasonable.

Given what happened to Montana et al, you'd have to wonder at some piont if Jim is thinking about an exit strategy via a takeover.

chart wise about to break out from a bullish triangle which has been in place since Oct 07 market top.

Once this bit of stale selling is cleared a run back to the old highs of 2.90 looks likely.

forest
21-07-2009, 11:29 AM
Div yield of over 6% p/e of 7x it's pretty reasonable.(Footsie)

You call it pretty reasonable, I thought brilliant would be a better description. How many other NZX companies are there growing there net profits per share from 7c in 2006 to 30+ cents in 2009 and still have a good change of further growth. Thats a compounding growth of over 60% for 3 years.
I would love to hear of anybody who can think of a NZX company with a low trailing PE of less then 10 and a expectation of growing NP by 30% +, compounding for the next 3 years.
Yes I would be happy with half the yearly growrh in net profit.

The BOWMAN
21-07-2009, 01:09 PM
Can anyone explain why DGL is not in the NZX 50? It is larger than many others in the list.

Footsie
21-07-2009, 01:39 PM
They have some silly rules.
One is the free float for liquidity and the other is to be included in the top 50 you have to be above 45 on the list

DGL are 42 so they should be in really.
In my opinion MVN, SKL and THL should be dropped.

THL m/cap 50-60m... they should be OUT THE DOOR>

This wouldnt happen on the ASX

Kryptor
21-07-2009, 06:26 PM
I say to long term holders be very careful about holding this stock. Who are the consumers of this 1 trick pony wine producer?

Some day, I don't know when, but one day..the oyster bay fad will move over to the next thing.

winner69
01-03-2010, 07:08 PM
Not so flash the last couple days

modandm
08-12-2010, 03:49 PM
UPDATE: Since the drama's of march and the fall from 2.80ish to 1.60ish DGL has treaded water between 160 and 180. To me it looks as though an uptrend is now in place starting from july the price is up from 1.60 to 1.90 and making higher highs and higher lows.

I bought into this company because I believe they have a powerful brand in oyster bay and if they can execute the intl growth strategy well there is certainly the prospects of a takeover. I feel that in these times of wine commoditisation having a recognised brand will become more and more important.

Be great to hear others views on the takover of OBV, the uptrend, or the general fundamentals and valuation of this co

forest
08-12-2010, 04:31 PM
Modandm, wondering if you are confusing oyster bay vineyards (which is a seperate public company but have DGL as biggest share holder) and DGL which own the oyster bay wine brand. Yes it is confusing.
I like DGL because of the quality of the board and the cashflow.
P/CF operating = 4
P/CF Free = 10
This is at todays SP of $1.90

modandm
09-12-2010, 10:15 AM
hi forest,

no im aware that OBV is a seperate company - it is strange that DGL own the brand name isn't it. Anyway it seems as though DGL is taking over OBV anyway.

Jim and co are highly regarded management I agree and the stock is certainly cheap on multiples as you suggest. Just had a further read of the recent presentation at the AGM - its positive while noting the FX and glut challenges. I feel that the NZD is fairly valued and am sick of hearing exporters bleat about it - get on with the job and be competitive at the new norm I say.

What do you think of the company's growth prospects over the next 2-3years? Can they continue to grow in North America? I see this as a key driver for the company. Also it will be interesting to see if the new sparkling wines are successful - over the christmas period will be a real test.

Lastly do you think they may become an attractive takover target to the likes of fosters wines (once spun off) or other big players? My hope is that their brand recognition continues to grow to a point where they are highly attractive.

After all of this im considering increasing my holding - Its hard to find stocks to buy in NZ at the moment, and this one is very fairly priced imho for a growth story.

forest
09-12-2010, 05:03 PM
Even without growth this share is priced attractive (to me). So any growth is a bonus and I do think growth is likely to come even if it is slow over the next couple of years.

A take over of DGL I think might not be so likely as Jim and sister own more than 50% of DGL, so between them they have control.

forest
10-12-2010, 01:22 PM
Daily ShareChat: Delegat
By Jenny Ruth

Friday 10th December 2010
Text too small?

Winemaker Delegat's reaffirming its profit guidance of between $23 million and $26 million for the year ending June, 2001 has caused Rob Mercer at Forsyth Barr to raise his forecast.

Mercer now expects a $25.5 million net profit, up from his previous $23.9 million forecast.

"We believe Delegat's is on track to achieve earnings towards the top end of its guidance," Mercer says.

That's despite trading conditions for export wine companies remaining challenging.

Delegat's 40% decline in EBIT (earnings before interest and tax) in the year ended June 2010 was mostly due to non-cash items, a 10% decline in averaged realised case price to $112.70 and a step-up in operating costs to support higher volumes, Mercer says.

Delegat's meeting his forecast $44.1 million EBIT for the current year would be well up on the $27.3 million achieved last year.

"The medium-term growth prospects remain substantial and there is further earnings upside from the current level to a global economic recovery," he says.

If the New Zealand dollar depreciates towards mean levels against the Euro and US dollar, that should further stimulate earnings.

"We believe the market has extrapolated an overly pessimistic view of Delegat's medium-term profit outlook based on perceptions of the wine industry," Mercer says.



Recommendation: Buy.

bryndlefly
04-02-2011, 01:00 PM
Recommendation: Buy.

no buyers left today?

modandm
23-02-2011, 10:30 AM
Any comments on the half year report:
http://www.nzx.com/markets/NZSX/DGL/announcements/4693010/DGL-Interim-Results-to-31-December-2010

DGL commits to NPAT of 20.5-25.5m for the full year. NPAT growth of 9% vs the prior half year.

Seems like a good result to me: 18% sales growth in UK/Europe yoy is good, but im a bit disappointed that Jim hasn't delivered in the US. Guess its a pretty tough market.

Low hanging fruit has probably been picked for this company now and we will see a steady slow growth in the coming years. Still at its current SP and PE ratio it is a good conservative investment and a relative bargain.

Doing the maths forecast FY11 EPS is 23c and at 1.95 (current SP) that puts it on a PE ratio of 8.5. Since you can expect ~6%pa growth as a safe call over the next 5 years the PEG ratio is 1.41. Pretty decent I would say. I think it's the liquidity premium that is holding this co down.

modandm
23-02-2011, 10:32 AM
it would be great if someone could call the company and enquire as to how the sparkling wines are doing?

modandm
16-03-2011, 11:13 AM
Im thinking DGL is going to outperform estimates with FY earnings. I read a news article saying NZ was doing better than Australia in the UK for wines growth yoy and now another article saying NZ wine into the US is growing rapidly.

http://www.bloomberg.com/news/2011-03-15/u-s-passes-france-for-first-time-as-world-s-biggest-wine-consuming-nation.html
he fastest-growing varietals were pinot noir, riesling and sauvignon blanc, which all rose more than 9 percent, according to Nielsen. In terms of imports, wines from Argentina and New Zealand had the biggest gains, at more than 24 percent.

The millennial generation -- consumers in their 20s and 30s -- are reaching for more traditional varietals and pricier bottles, he said.

“There’s no question that the millennial consumer is participating in the category at a much greater level than previous generations,” Stratton said. “The consumer is very much bringing wine into more occasions, and they are participating in the wine category in a more frequent basis.”

You have to think Oyster bay is getting some of that as a premier well known NZ wine.

modandm
05-04-2011, 11:45 AM
Guys the interim result is out and its a strong result for DGL. The SP has grown for 190-230 over the past couple of months.

As per my prior posts DGL has had good traction in the US - case sales up 24% offset by a 13% decline is UK sales. Overall sales are off slightly and revenue up slightly.

*JUST REALISED THAT IS THE EXACT FIGURE USED IN THE BLOOMBERG ARTICLE!!! WOW

Operating EBIT of $30.0 million is $3.5 million greater than the same period in the prior year, while Operating EBITDA is $4.2 million ahead of the same period the previous year at $35.7 million.

NPAT is 15.8m - up 14%

The numbers are well ahead of analyst estimates - "DGL remains confident that its sales performance for the full year will be ahead of forecast"

A conservative full year EPS estimate is now 21c. which means EPS growth of 16%yoy. at 2.30 DGL now trades on a mixed forwards/back PE of 11 and a PEG assuming a 8% growth rate of 1.36.

Other positives are a $1.1m saving in admin expenses.

modandm
05-04-2011, 11:47 AM
It always surprises me people complain of a lack of good opportunities on the NZX when a great growth at a value price play like this comes along nobody besides me and forest are interested.

forest
06-04-2011, 03:51 PM
Modandm I think most people read about the limited profits most wineries make, not realising that by far most wineries are operated by people as a hobby.
Only a minority of the wineries are profesially operated with strong sales teams and proper spending disciplines. Those are likely to do quite well.
DGL with a FW P/E of about 11 and dividend of about 3.5% to us looks to good to pass by.

modandm
11-04-2011, 04:50 PM
AND.. its in an uptrend phaderus would be proud of!

bryndlefly
03-06-2011, 01:24 PM
DGL shareprice has dropped about 5% in last couple of days - any reason for that? Is it the high NZ dollar? or just volatility

Lizard
31-12-2011, 09:46 PM
AND.. its in an uptrend phaderus would be proud of!

... and then a downtrend...then an uptrend... then a downtrend...

OBV holding up okay though.

Quite like DGL - though not convinced about the wines. If they had a little less debt, they'd be more convincing... tempting at these prices ($2.05), but still sailing into the wind.

janner
31-12-2011, 10:23 PM
Up before the div down after.. Been very pronounced for some time Lizard..

Big movements though

modandm
29-02-2012, 01:02 AM
any comments on the latest result guys - was quite strong.

percy
29-02-2012, 07:55 AM
Craigs have upgraded DGL to "buy" with 12mth target price of $2.92.

Lizard
29-02-2012, 09:26 AM
I liked result. Yet to get back for a close look. Was hoping forest would write it up :).

forest
29-02-2012, 12:54 PM
Ok for what it is worth.

By my calculations about 65% of their exports are to North America, UK and Europe. Currency in those countries dropped between 6% and 8% compared to the NZ$ between Dec 10 and Dec 11.

Profits didnt change much from 1H10 to 1H11.
So under the circumstances not a bad result in my mind especially if one considers that 1H12 CFop is up more then 20% on previous year.

000831
07-05-2013, 09:13 AM
beauty has been igroned at the corner. 30%-40% increase in NPAT this year? where are other holders?

Zaphod
02-06-2013, 08:38 AM
beauty has been igroned at the corner. 30%-40% increase in NPAT this year? where are other holders?

+1 very happy holder here. Hopefully they keep up the good work!

forest
17-07-2013, 07:27 AM
FORECAST: DGL: 2013 Harvest Announcement and Performance Guidance Update 12:24p.m.
DGL
16/07/2013 12:24
FORECAST

REL: 1224 HRS Delegat's Group Limited

FORECAST: DGL: 2013 Harvest Announcement and Performance Guidance Update

Delegat's Group Limited announces that it has concluded the 2013 harvest
which amounted to 28,884 tonnes, in line with forecast and up 42% on the low
yielding 2012 vintage. This includes 1,271 tonnes from acquired productive
vineyards during the year.
The 2013 harvest has delivered on-target yields and in line with previous
guidance. The season has delivered exceptional quality fruit as a result of
ideal weather conditions throughout the 2012/13 growing season.
Jim Delegat, Managing Director, Delegat's Group Limited says "the Group has
closely managed its inventory throughout the 2013 financial year. The higher
2013 harvest provides us the opportunity to rebuild our depleted
carry-forward inventory levels for Chardonnay, Pinot Noir and Merlot. The
Marlborough Sauvignon 2013 vintage was released in early June".
The Group is confident in its ability to deliver a strong performance in 2013
financial year having maintained in-market case price realisation and case
sales volumes in an environment of continued foreign exchange headwinds. The
Group's 'operating profit' will be in line with the previous market guidance,
albeit having incurred acquisition costs for the purchase of Barossa Valley
Estate Pty Limited.
The Group anticipates that the 'reported profit' will be significantly higher
this year through the impact of New Zealand IFRS fair value adjustments,
particularly the net harvest provisions for the current year vintage.

DYOR, Drink Oyster Bay or Delegats wine.
The more you drink it the better you will understand this company.:)

percy
17-07-2013, 07:51 AM
DYOR, Drink Oyster Bay or Delegats wine.
The more you drink it the better you will understand this company.:)

Great investment advice.!!!!

forest
26-08-2013, 11:03 AM
I have been watching this company closely for a while.
However thier latest results indicates thier stratigy of growth by way of middle to high brand wine sale's volume does not appear to be working.

Yes they sold a heap more wine but the price per case has gone backwards.

Of course they have blamed the $ but this was no higher than the ave for the previous year.

Anyone with thoughts on the latest results.


I am a little disappointed, they forecast growth for the next 6 years (from 1.95 mil cases to 3.07 mil cases) not a rate I get exited about. So a mediocre result in my mind.

Lorne Ranger
31-10-2013, 09:54 PM
Good overall climate for growth it seems. Demand wont be an issue...

http://www.bbc.co.uk/news/world-24746539

samdaman
20-01-2014, 01:19 PM
Hey I'm new to investing and have been looking at this company recently.

I've been trying to value this stock with the discount dividend model and the gordon growth model and both return values showing the stock is worth buying. This was using conservative values as well. However some warning flags have shot up for me that I thought I may run by here to see what people think.

-First up I'm relatively new to this so I feel as though I could have stuffed up the numbers, I'm generally good with numbers though so I don't think I would of done that, anything can happen though.
-The ROE seems to be a huge flag for a lot of value investors and DGL seem to have strange values which hover around an average of 13%. Would this be too small and risky for someone with a tiny amount of money?
-Is the amount of debt/equity a little high?
-How worrying should one find it that their book value is a good 150mil lower than their market cap?
-Also are these good and relevant fundamentals to be looking at to try value a company?

Thanks for any help guys. A newb like me really appreciates any input :)

000831
20-01-2014, 01:24 PM
the problem is liquidity issues, hard to buy and hard to sell. it always in my watch list, but never bought it once. Maybe when I am over 60s, I have patience to buy and hold it.

PartyPooper
20-01-2014, 08:03 PM
Being a Wine Manager has keep me away from this stock to say the least. Their products don't move in low socio economic area's. Also add in Pernod Ricard, Constellations and Eurovintage offer better cheap wines and even then the latter companies offer better premium reserve wines.

samdaman
21-01-2014, 07:52 AM
cheers for the replies, all in all I think I may pass on this one

Zaphod
21-01-2014, 10:28 AM
Keep an eye on the next HY update which will probably occur in February. DGL have missed their targets in the last few market updates due to (on the face of things) wine gluts, exchange rates etc. but this may in fact be a signal that their "super premium" strategy is fundamental flawed.

Snoopy
21-01-2014, 02:53 PM
Hey I'm new to investing and have been looking at this company recently.

I've been trying to value this stock with the discount dividend model and the gordon growth model and both return values showing the stock is worth buying. This was using conservative values as well.


How do you define 'conservative' in this instance?



However some warning flags have shot up for me that I thought I may run by here to see what people think.

-The ROE seems to be a huge flag for a lot of value investors and DGL seem to have strange values which hover around an average of 13%. Would this be too small and risky for someone with a tiny amount of money?


IMO for valuation purposes you should always use an average ROE, with a minimum of five years of data points. I prefer an ROE of 15 and above for my new investments. However, given the upheavals in Europe and the associated sharp depreciation of European currencies (Delegates main export thrust is Europe IIRC) over the last two years relative to the NZ dollar, one might expect returns to have fallen. Given the circumstances I would say 13 is OK.



-Is the amount of debt/equity a little high?


Total equity $217.4m. Total debt $203.4m. On the face of it, that is near to as high as I would be comfortable with. However, you have to consider they have just made a large Australian acquisition. You also have to consider that the balance date is 30th June. I am not sure of the seasonality of DGLs production and sales. But if they have a lot of stock on 30th June that they are about to sell, this could artificially raise debt levels when viewed on an annual basis.



-How worrying should one find it that their book value is a good 150mil lower than their market cap?


This is only a worry if you want to buy the company to break it up. In general a company with a good ROE will always trade at a price significantly higher than net asset value.



-Also are these good and relevant fundamentals to be looking at to try value a company?


Given DGL is a relatively mature company, yes.

SNOOPY

percy
21-01-2014, 03:23 PM
I enjoy a glass of Sauvignon Blanc now and again.Oyster Bay is very pleasant drop.
I once attended The Oyster Bay AGM held one November in Blenheim.
Was surprised to learn, while on a vineyard tour, that they were making arrangements to have six helicopters on stand by,as they were expecting frosts that night! Then they were working out what parts of the vineyard they would try and save. Yes they were needed.Grapes only produce one crop a year.Horticulture is weather,disease etc difficult business.A wine grower has a lot of problems.A wine seller then has to sell their products overseas.Main UK supermarkets are not easy to deal with.Rising NZ dollar does not help an exporter.
Must admit I thought it was all too difficult and sold my shares,yet I still enjoy a nice Savvignon Blanc without the worries.

forest
21-01-2014, 03:36 PM
I enjoy a glass of Sauvignon Blanc now and again.Oyster Bay is very pleasant drop.
I once attended The Oyster Bay AGM held one November in Blenheim.
Was surprised to learn, while on a vineyard tour, that they were making arrangements to have six helicopters on stand by,as they were expecting frosts that night! Then they were working out what parts of the vineyard they would try and save. Yes they were needed.Grapes only produce one crop a year.Horticulture is weather,disease etc difficult business.A wine grower has a lot of problems.A wine seller then has to sell their products overseas.Main UK supermarkets are not easy to deal with.Rising NZ dollar does not help an exporter.
Must admit I thought it was all too difficult and sold my shares,yet I still enjoy a nice Savvignon Blanc without the worries.

On average over 43mil CF from operations in the last 5 years, makes it look a bit more appealing.

percy
21-01-2014, 03:44 PM
On average over 43mil CF from operations in the last 5 years, makes it look a bit more appealing.

Excellent.!
Plus Jim Delegat is a brilliant operator.
Pity he can't control the weather.! lol.

forest
21-01-2014, 04:08 PM
Excellent.!
Plus Jim Delegat is a brilliant operator.
Pity he can't control the weather.! lol.

Jim is able to partly control the weather, the helicopters can and do keep the frost away when it is important. And many vineyards are able to water each individual grapevine. Controlling the sun is a little harder but owning vineyards in the right parts of the country can give you many hours of predictable sunshine. Modern vineyards to me seem to be able to reduce risk with a little effort.

percy
01-09-2014, 04:42 PM
Knew there was a more up to date thread.

andrewdwalters
09-02-2015, 01:52 PM
where is the up to date thread??

macduffy
09-02-2015, 02:16 PM
where is the up to date thread??

This is it!

The other is Delegats IPO.

:)

Biscuit
27-02-2015, 09:07 AM
HY result out. Slow progress, but still predicting 9% improvement in NPAT for full year

noodles
03-07-2015, 08:59 PM
DGL reached an all-time high today. No doubt on the back of a lower NZD. #exportersAreLovingIt

forest
04-07-2015, 07:05 AM
DGL reached an all-time high today. No doubt on the back of a lower NZD.
#exportersAreLovingIt

Hi Noodles, as an exporter DGL benefits from the lower $NZ also DGL is growing its business with the help of substantial borrowings. The lowering of interest rates is also helpful.

noodles
04-07-2015, 12:53 PM
Hi Noodles, as an exporter DGL benefits from the lower $NZ also DGL is growing its business with the help of substantial borrowings. The lowering of interest rates is also helpful.

Good point. I hadn't factored any drop in interest rate into my rough calculations. Will need to revisit that.

Hoop
23-07-2015, 10:23 AM
OCR dropped from 3.25% to 3% at 9.00am today.....Another breakout for DGL this morning to new highs

tobo
04-01-2018, 11:38 AM
Craigs have this as 'increase'. (Quality brand and offshore earnings.) But they also have a 12 month share price target of $7.05

BlackPeter
13-08-2018, 08:42 AM
Just passing this stock somewhere on the bottom of my watch list. Clearly one of the stocks where I underestimated the potential and sold ways too early (with a nice gain I might say).

They are clearly a well run and successful business producing a quite drinkable wine :), but still baffled what motivates investors to pay nearly $10 for a share with a forward PE of more than 20, a backward PE of nearly 30 and a forward CAGR of 5? I guess sure, their income (Kiwi dollar dropping) is likely to grow in the next couple of years, but still finding it difficult to make up credible future income numbers justifying the current share price.

Anybody wants to share their income and growth assumptions - or is this just riding the wave? Though fair enough - they say "let your profits run".

forest
13-08-2018, 09:00 AM
I have followed DGL for a long time and I am with you, the share price seem to be 2 or 3 dollars ahead of what value I would give it. Specially when you allowed for the extra risk you take on with DGL high Debt to Equity of just over 90%.
Whatever Jim Delegat does he seem to do with a lot of passion, that passion used to be the winery business. Nowadays he seem to put a lot of passion into sailing. I am just wondering if the winery still gets the attention its needs.

Patient Panda
13-08-2018, 09:13 AM
Just passing this stock somewhere on the bottom of my watch list. Clearly one of the stocks where I underestimated the potential and sold ways too early (with a nice gain I might say).

They are clearly a well run and successful business producing a quite drinkable wine :), but still baffled what motivates investors to pay nearly $10 for a share with a forward PE of more than 20, a backward PE of nearly 30 and a forward CAGR of 5? I guess sure, their income (Kiwi dollar dropping) is likely to grow in the next couple of years, but still finding it difficult to make up credible future income numbers justifying the current share price.

Anybody wants to share their income and growth assumptions - or is this just riding the wave? Though fair enough - they say "let your profits run".


Hey BP,


i had a quick check on reuters and their 5 year eps growth is 9.82. Unless theres obvious reasons as to why it might be lower in future a forward CAGR of 5 seems very conservative. Reuters mean estimate of future long term growth rate % is 14.33

NZ has a strong comparative advantage in wine. Aus exports far more by volume but NZ much higher by value. Only a few countries in the world can be or are currently great wine producers (e.g argentina, italy, france)

As to DGL’s share price often times theres no rhyme nor reason. Mr market is prone to depression and over exuberance. Reuters notes the 5yr PE low was 9.73 so quite a difference to the PE of today !

https://www.reuters.com/finance/stocks/financial-highlights/DGL.NZ



i do not know much at all about DGL though I do own a reasonable amount of one of their smaller competitors, Invivo. They’ve tripled revenues in the last 3 years and have been extremely happy with them thus far.

Robomo
13-08-2018, 09:18 AM
2006:
I'm just getting interested in this stock - and not solely because I heard about the very tasty wine-tasting at the agm recently. (Memories of CIL/Montana in the good old days, when we all walked away with gift bottles in our hands!)
Were any STers at the agm? I'd be interested in anyone's thoughts/comments on DGL as a medium/long term hold. I note the div yield is negligible and the P/E abnormally high.

12 years ago, the comments about the PE were just the same as today! SP then (2006) was about $2.25. There was a comment in the NZ Herald about 7 years ago that DGL "consistently under promise and over deliver" and this continues to have been the case ever since. Wonderful growth stock that I've held since listing in 2004 plus a modest dividend. I've sold a few along the way but still have 50K worth that only cost about 7K. 34% increase in SP in the past 12 months sees it as one of the best performers on the NZX. The fall in the NZ$ can only help DGL, particularly as the USA is their biggest export market. Very well run company.

BlackPeter
13-08-2018, 09:32 AM
Hey BP,


i had a quick check on reuters and their 5 year eps growth is 9.82. Unless theres obvious reasons as to why it might be lower in future a forward CAGR of 5 seems very conservative. Reuters mean estimate of future long term growth rate % is 14.33

NZ has a strong comparative advantage in wine. Aus exports far more by volume but NZ much higher by value. Only a few countries in the world can be or are currently great wine producers (e.g argentina, italy, france)

As to DGL’s share price often times theres no rhyme nor reason. Mr market is prone to depression and over exuberance. Reuters notes the 5yr PE low was 9.73 so quite a difference to the PE of today !

https://www.reuters.com/finance/stocks/financial-highlights/DGL.NZ



i do not know much at all about DGL though I do own a reasonable amount of one of their smaller competitors, Invivo. They’ve tripled revenues in the last 3 years and have been extremely happy with them thus far.

Cheers for that, Panda.

Re PE and CAGR I never use published numbers from any database unless I know exactly how they generate it. I hold it with Churchill: "I only believe in statistics that I doctored myself ;);

For forward EPS CAGR I use 4 years back and (if I've got them) 3 years forward (sort of conservative version of Jim Slater's recommendation). This is 43 cents in 2014 up to 56 cents in 2020 (4-trader consensus). Makes a CAGR of 4.9% - and no, if I modify the time window than the change is not significant - i.e. not sure how Reuters make up their numbers. Maybe they took 2012 (a particularly bad year as start year - only 25 cents EPS, worse both than 2011 and 2013) and 2017 ... this might make up the nearly 10 CAGR, but would be highly unrepresentative. Who knows.

So yes, it is always possible to generate nearly any CAGR if you pick the most suitable time window for the desired value :); Does not mean it is representative, though.

Patient Panda
13-08-2018, 09:47 AM
Good point I was being a bit lazy on this one. Should certainly double check more often on companies I’m researching.

jg8512
13-08-2018, 10:17 AM
like robomo I'm a long term holder (and CIL/Montana before that)

analysis of DGL is made hard by the long lead times between buying land, planting grapes, making wine, holding inventory and finally selling wine. As a result, I suspect there is quite a bit of non-earning (and under-earning) assets at any point in time. So think you really need to build a good model which tries to link the existing earnings with the part of the expense and investments that is mature and treats separately the bits that are under or not yet full earning. the latter only (or largely) show as expenses or assets, and clearly have considerable value not yet reflected in current profit results.

Also, as noted above, there are some really attractive features of investing in the NZ wine industry.

the hard question is whether both those aspects of DGL are now fully reflected in the share price. GLAH

BlackPeter
13-08-2018, 10:35 AM
like robomo I'm a long term holder (and CIL/Montana before that)

analysis of DGL is made hard by the long lead times between buying land, planting grapes, making wine, holding inventory and finally selling wine. As a result, I suspect there is quite a bit of non-earning (and under-earning) assets at any point in time. So think you really need to build a good model which tries to link the existing earnings with the part of the expense and investments that is mature and treats separately the bits that are under or not yet full earning. the latter only (or largely) show as expenses or assets, and clearly have considerable value not yet reflected in current profit results.

Also, as noted above, there are some really attractive features of investing in the NZ wine industry.

the hard question is whether both those aspects of DGL are now fully reflected in the share price. GLAH

Good answer - cheers.

I guess these currently unproductive (or less productive) assets would be highly relevant if they are not "business as usual" - i.e. if DGL is moving from a growth company to a stagnating company. Is this the case?

Other things which spring to mind are obviously:

do they intend to turn at some stage into a real estate developer subdividing their prime estate into life style blocks? Many farmers made millions that way, but current limit on immigration is bad.

What is the future of the wine industry? Given that we soon reach the milestone for smoke free NZ - is booze free next?

How will climate change impact on the wine industry and will we be able to compete against this premium white from Siberia?
https://www.calvertjournal.com/news/show/6918/pick-up-a-bottle-of-siberias-finest

So many risks and opportunities ...

MauroNZ
14-08-2018, 11:55 AM
like robomo I'm a long term holder (and CIL/Montana before that)

analysis of DGL is made hard by the long lead times between buying land, planting grapes, making wine, holding inventory and finally selling wine. As a result, I suspect there is quite a bit of non-earning (and under-earning) assets at any point in time. So think you really need to build a good model which tries to link the existing earnings with the part of the expense and investments that is mature and treats separately the bits that are under or not yet full earning. the latter only (or largely) show as expenses or assets, and clearly have considerable value not yet reflected in current profit results.

Also, as noted above, there are some really attractive features of investing in the NZ wine industry.

the hard question is whether both those aspects of DGL are now fully reflected in the share price. GLAH

Hi thanks for your post, I like the idea of investing in the NZ wine industry but unfortunately I know a little so could you please elaborate more in regards of this?. Thanks.

jg8512
14-08-2018, 03:24 PM
MauroNZ

where would one start. As per my post, I reckon its not the easiest sector to analyse. so why start with it, as opposed to some other easier sector?

However, if you are interested in wine specifically, the annual reports are a good place to start. For NZ listed companies see:
http://www.nzmwe.com/
http://www.nzwineco.co.nz/
https://www.delegatwines.com/

PS. If you happen to live in Marlborough - you're already a wine shareholder through your local community-owned electricity lines company (which owns yealands wines).

Biscuit
24-02-2020, 11:34 AM
Another year of steady progress... operating NPAT up 10%.... always a tasty holding

Biscuit
24-02-2020, 01:24 PM
Bit of free advertising for DGL (but perhaps not such good taste):

At first glance it may seem that coronavirus, Hong Kong protesters and New Zealand wine have very little in common.
But after a police officer in Hong Kong was infected with COVID-19 - the official name for coronavirus - a bottle of New Zealand bubbly has played a surprising role in a controversy that has split the internet.
The 48-year-old officer was confirmed to have been infected with the virus on Thursday last week. His wife and mother were also showing symptoms and 59 other police officers who had been at a large dinner party with the man were placed in quarantine.
After news of the officer's infection was made public, protesters were seen celebrating - in one case with a bottle of Oyster Bay sparkling wine.

Biscuit
25-02-2020, 08:40 AM
Share price up 4.5% yesterday, so all good, no doom and gloom on this thread!

BlackPeter
23-04-2020, 08:07 AM
Maybe Corona not good for winemaking:


The NZ Winegrowers association anticipates that 60 per cent of wineries in this country will experience a 15 per cent drop in sales due to the outbreak.


If you are a subscriber - here is the source:

https://www.nzherald.co.nz/business/news/article.cfm?c_id=3&objectid=12326144

Otherwise - consider to support some local journalism by taking a sub ... we need them now more than ever.

Flugenbear
23-04-2020, 08:55 AM
I think the drop in sales will be smaller wineries with a high proportion of sales through bars and restaurants. Large wineries like Delegat with strong global supermarket footprint are in a good position to maintain and grow sales.
I think that depends on how deep and dark this worldwide recession will be. NZ wine is not the cheapest overseas, and many people who will lose their incomes may start to look at the cheaper options from necessity. Either way I doubt there will be any growth for a bit.

Ricky-bobby
23-04-2020, 10:35 AM
This is a very well run company, and dominates overseas. Don’t own any but want some!!

Mr Slothbear
23-04-2020, 12:22 PM
I think that depends on how deep and dark this worldwide recession will be. NZ wine is not the cheapest overseas, and many people who will lose their incomes may start to look at the cheaper options from necessity. Either way I doubt there will be any growth for a bit.


Invivo which is the only wine company I own has flagged another year of growth.

whether this extends to other NZ wine companies I do not know but some food for thought.

percy
23-04-2020, 12:39 PM
Airlines will be buying less than 20% of what they used to buy.
Restaurants,bars,hotels closed.
Can't see at home drinking is going to fill the gaps.
I think we will see a lot of "cancelled export order" signs at Pak 'n Save later this year.
Oyster Bay range has been $13.99 recently at New World.
http://www.youtube-nocookie.com/embed/44UC6muN8KY?rel=0
Not much wine being brought here.!..lol

traineeinvestor
23-04-2020, 01:11 PM
Can't see at home drinking is going to fill the gaps.


We're doing our best! :eek2:

percy
23-04-2020, 02:48 PM
We're doing our best! :eek2:

Classic...............lol.

blackie
28-11-2020, 06:00 PM
after heavy chinese tariffs placed on aussie wines, this could be a corker on monday

Zaphod
28-11-2020, 06:05 PM
after heavy chinese tariffs placed on aussie wines, this could be a corker on monday

NZ is already annoying the CCP on various matters, it's only time until they impose tariffs on us, especially since our products are apparently very unsafe e.g. covid infected beef.

blackie
28-11-2020, 06:28 PM
one would expect our new minister of foreign affairs to display the appropriate levels of diplomacy to calm the waters...........??? or would one......

nztx
28-11-2020, 06:45 PM
one would expect our new minister of foreign affairs to display the appropriate levels of diplomacy to calm the waters...........??? or would one......



Aye .. but wasn't the last bullfrog on the lillypad mostly asleep in residence ? ;)

Ricky-bobby
16-02-2021, 06:33 PM
Trading a bit lower lately. See the MD has resigned, which is a bugger. Jim sure does go through them.... results are out 24/2, say it will be another cracker. Sauv is humming at the moment.

Biscuit
17-02-2021, 08:32 AM
Trading a bit lower lately. See the MD has resigned, which is a bugger. Jim sure does go through them.... results are out 24/2, say it will be another cracker. Sauv is humming at the moment.

MD had been there quite a while I think. I did quite well on these selling this time last year and buying back a couple of months later! They are a good company IMHO, steady growth. Look forward to see the results.

Biscuit
24-02-2021, 11:41 AM
MD had been there quite a while I think. I did quite well on these selling this time last year and buying back a couple of months later! They are a good company IMHO, steady growth. Look forward to see the results.

And the results look good to me. Onwards and upwards, steady growth as always.

Biscuit
24-02-2021, 11:47 AM
And the results look good to me. Onwards and upwards, steady growth as always.

Main effect of Covid seems to have been to reduce all the entertainment and travel related expenses! Maybe there is a lesson here for management - not one they would be keen to hear though.

Biscuit
24-02-2021, 01:42 PM
DGL not much regarded on this forum. Interesting to compare the performance of DGL with one of the ST hotshots, say HLG. I first bought into both about eleven years ago (2010).

Bought DGL for around $1.60 and HLG for around $3.40. The dividend yield (according to direct brokers) is currently 5.3% for HLG and 1.1% for DGL. That gives me a current yield on my original investment of about 12% for HLG and 10% for DGL. So, roughly comparable there but of course I would have picked up a lot more income from HLG than DGL over the eleven years. On the other hand my capital invested in DGL has increased by about 10x whereas my capital in HLG has gone up by a bit over 2x.

As a long term investment there doesn't seem to be much doubt which is the better company?

Biscuit
24-02-2021, 02:12 PM
DGL not much regarded on this forum. Interesting to compare the performance of DGL with one of the ST hotshots, say HLG. I first bought into both about eleven years ago (2010).

Bought DGL for around $1.60 and HLG for around $3.40. The dividend yield (according to direct brokers) is currently 5.3% for HLG and 1.1% for DGL. That gives me a current yield on my original investment of about 12% for HLG and 10% for DGL. So, roughly comparable there but of course I would have picked up a lot more income from HLG than DGL over the eleven years. On the other hand my capital invested in DGL has increased by about 10x whereas my capital in HLG has gone up by a bit over 2x.

As a long term investment there doesn't seem to be much doubt which is the better company?

Of course that is just the time period I've been invested, other periods might tell a different story? Looking at the companies in another way, fairly clear which company has the better moat. Anyone can sell clothes (have done it myself actually many years ago). Wine is a different kettle of grapes. Takes time and money to establish wineries in the right area. Takes years of promotion to develop a premium brand. I would say the moat around DGL is a mile wider and a mile deeper than the ditch around HLG.

Snow Leopard
24-02-2021, 02:54 PM
Interesting, and well done Biscuit.

My [dividend reinvested] calculations say that DGL has provided a compound 24.5% pa return whereas HLG whilst has achieved a mere 16.6% over 10 years.

Pity I never invested. It is ironic that I have always regarded this wine maker as an illiquid stock :mellow:.

Biscuit
24-02-2021, 02:58 PM
...Pity I never invested. It is ironic that I have always regarded this wine maker as an illiquid stock :mellow:.


LOL, yes and the wine is a little-over rated too IMO.

Beagle
24-02-2021, 03:03 PM
Of course that is just the time period I've been invested, other periods might tell a different story? Looking at the companies in another way, fairly clear which company has the better moat. Anyone can sell clothes (have done it myself actually many years ago). Wine is a different kettle of grapes. Takes time and money to establish wineries in the right area. Takes years of promotion to develop a premium brand. I would say the moat around DGL is a mile wider and a mile deeper than the ditch around HLG.

A very different story. Last 5 years HLG v DGL shows HLG has outperformed and the chart attached excludes dividends and we know HLG have consistently paid twice annual massive fully imputed dividends so overall inclusive of dividends HLG has absolutly thrashed DGL. 12336

Biscuit
24-02-2021, 03:19 PM
A very different story. Last 5 years HLG v DGL shows HLG has outperformed and the chart attached excludes dividends and we know HLG have consistently paid twice annual massive fully imputed dividends so overall inclusive of dividends HLG has absolutly thrashed DGL.

Yes, HLG very cyclical and have outperformed in the short term - time to sell probably? In the long term they go nowhere much, what they gain here they lose there. I'm not saying they are a bad company - I have a fairly big holding. But looking at the longer term, I don't think there is really any doubt that DGL are the better investment. Ten years from now the story of the last ten years for each company will likely repeat as far as I can see. They both are consistent to their own strategy and DGL's strategy is better.

Beagle
24-02-2021, 03:29 PM
Time will tell. I have posted my thoughts on HLG in the appropriate thread. Probably the most misunderstood growth stock on the NZX, (probably due to complete lack of analyst coverage).

777
24-02-2021, 03:33 PM
Interesting that Kingfish have DGL in fund but not HLG.

winner69
24-02-2021, 03:38 PM
Interesting that Kingfish have DGL in fund but not HLG.

KFL understand DGL but can’t get a handle on misunderstood stocks?

Beagle
24-02-2021, 03:49 PM
Kingfish have done well to beat the market by a few percent on average over the last few years and I understand they view DGL as very much a core stock in their portfolio. I am sure they will be pleased with today's result as are other shareholders. I vividly recall at last year's Kingfish annual meeting that shareholders were very keen for the directors to ask Delegate's to bring along some of their excellent wine to enjoy with the superb complimentary lunch. Such a fine idea. Lets hope it happens at this years KFL meeting.

Forecasting $67m this year which is 66 cps and puts them on a FY21 PE of 23 at today's closing price. Seems reasonable given their solid track record.

jg8512
18-05-2021, 06:59 PM
what is happening to profitability/solvency in the wine sector? two significant receiverships within the week: https://www.rnz.co.nz/news/business/442798/villa-maria-wine-company-owners-in-receivership and https://www.stuff.co.nz/business/industries/125102367/sacred-hills-hawkes-bay-and-marlborough-vineyards-companies-placed-into-receivership

and before that Lamont wines (Organic) and Carrick Wines (owned by the murdered woman in Akld) went into receivership.

anyone shed any insights?? reassuring that DGL's recent update was so positive, but still interested to know what is happening in the wider sector.

PS. the last harvest was not flash, so financial pressures on the sector may grow. consolidation opportunities?

Ricky-bobby
18-05-2021, 08:30 PM
Yeh both have been I trouble for a while... both are a complicated supply model with slow cashflow. Delegats is the opposite, single skew (oyster bay) that hums. They have just purchased more land up the wairau valley, think they have nearly 8000 hectares now... they also have an impressive route to market and are very effective at moving their product quickly (great cash flow). Villa and sacred hill are to exposed to Bordeaux reds, need to age for 12-18 months takes ages to sell through.

Rawz
19-05-2021, 09:57 AM
Villa Maria holding company receivership was actioned because of infighting in the Fistonich family, younger generation wanted to sell while older generation wanted to hold is my understanding. Business needs capital to expand. Can't do that through current ownership. The receivership was the only way to force the sale of Villa Maria which operates profitably.

Harvest down on last year is well known. Might see some of the big players buy some of the smaller players.

Ricky-bobby
20-05-2021, 04:58 AM
George doesn’t want to sell but bank is forcing it placing it into receivership. Bank wanted the sale to be through by the end of April and this cut out oversea bids. Scales bid covers debt with a bit left over for family. Next offer only covered debt...

Biscuit
09-11-2021, 09:33 AM
Seems to be no positive reaction to the Free Trade deal agreed with the UK that will eliminate tariffs on wine once it comes into force. Should provide a healthy boost to DGL exports to Britain, one of its main markets. I've been adding to my holding during this years sp weakness.

Ricky-bobby
09-11-2021, 11:28 AM
Did you see that Jim has steeped down as chair.

Biscuit
09-11-2021, 06:40 PM
Did you see that Jim has steeped down as chair.

Yes, he'll still be involved as a director so no change in steady, long-term growth strategy. They planning 25% growth over the next few years and no doubt they will achieve that at least.

wkr
07-03-2022, 07:41 PM
Anyone got any thoughts on Delegats? It has always delivered its targets for many years but lately its growth has really slowed. Is it just a temporary Covid thing or something more permanent?

BlackPeter
12-03-2022, 08:46 AM
Anyone got any thoughts on Delegats? It has always delivered its targets for many years but lately its growth has really slowed. Is it just a temporary Covid thing or something more permanent?

Good company, but I supposed they are doing their Ryman thingy (long pause after an amazing ascent). Covid actually did help them to increase their business. Given their pretty dear PE (nearly 30) and only modest growth rate (Earnings CAGR = 6) which well might slow down further after Covid, I'd expect the SP needs to take a long breather until they deserve the Share price the market is still prepared to pay.

FTG
12-03-2022, 11:02 AM
Good company, but I supposed they are doing their Ryman thingy (long pause after an amazing ascent). Covid actually did help them to increase their business. Given their pretty dear PE (nearly 30) and only modest growth rate (Earnings CAGR = 6) which well might slow down further after Covid, I'd expect the SP needs to take a long breather until they deserve the Share price the market is still prepared to pay.

All things being equal though......shouldn't we expect significant growth in earnings following all the M & A activity DGL has consummated over the last few months?

newbieinvestor
12-03-2022, 01:15 PM
All things being equal though......shouldn't we expect significant growth in earnings following all the M & A activity DGL has consummated over the last few months?

FTG : IMHO, I think you are referring to DGL Group discussed in the other thread (DGC - DGL Group (https://www.sharetrader.co.nz/showthread.php?12096-DGC-DGL-Group/page13)). Else ignore! :)

FTG
12-03-2022, 04:12 PM
FTG : IMHO, I think you are referring to DGL Group discussed in the other thread (DGC - DGL Group (https://www.sharetrader.co.nz/showthread.php?12096-DGC-DGL-Group/page13)). Else ignore! :)

Right you are! Silly me.
Sorry folks.

nztx
13-03-2022, 02:38 PM
Right you are! Silly me.
Sorry folks.


Haha confusing with the two similar tickers, different companies

Perhaps the thread title could be amended to include the company name
to eliminate any further confusion ? :)

Biscuit
26-08-2022, 09:26 AM
Not a great result this year. Holding steady but with ongoing impacts from increased supply expenses. Margins down. Next year's going to be better they reckon, especially if the supply issues smooth out a bit. 20% increase in case sales projected by 2024, so steady growth predicted.

Getty
26-08-2022, 09:34 AM
Haha confusing with the two similar tickers, different companies

Perhaps the thread title could be amended to include the company name
to eliminate any further confusion ? :)

Hey be careful on the use of Haha, that's a different brand and wine company too, lol.

nztx
26-08-2022, 10:30 AM
Hey be careful on the use of Haha, that's a different brand and wine company too, lol.


Have to watch that .. otherwise the knickers are bound to get in a knot somewhere and things
could get dangerous again ;)

Delegat (DGL) is certainly a consistent performer - even if the dividend wallet only gets rolled
out once a year :)

bull....
31-08-2022, 11:26 AM
getting a savaging in aus today on there not so good outlook statement

winner69
31-08-2022, 11:40 AM
getting a savaging in aus today on there not so good outlook statement

Profit u huge in F22 but flat in F23 it seems

In FY22, because of strategically higher stock holdings, expanded capabilities, balance sheet strength and the Group’s execution, DGL achieved some opportunistic growth in earnings which is unlikely to be replicated to the same extent in FY23. In addition, inflationary cost pressures across the globe may also have an impact on the earnings growth, albeit the Group will look to respond accordingly. These impacts are expected to be offset by a full year’s contribution from the Group’s FY22 acquisitions and other organic growth projects. Therefore, the Group anticipates its earnings growth to flatten in FY23 as a result

winner69
31-08-2022, 11:43 AM
hey bull .... think we using the wrong thread .... this is the booze outfit thread

percy
31-08-2022, 11:44 AM
Whoops got horrible solvents confused with great wine.....lol

Biscuit
31-08-2022, 12:00 PM
This is the Delegats (DGL) thread. This is a fairly old thread, don't know if the guy who started it is still around. Could do with a thread name change to Delegats. Perhaps the other DGL thread could be changed to "Not Delegats"?

Biscuit
31-08-2022, 12:02 PM
This is the Delegats (DGL) thread. This is a fairly old thread, don't know if the guy who started it is still around. Could do with a thread name change to Delegats. Perhaps the other DGL thread could be changed to "Not Delegats"?

Alternatively, sell your DGL shares and buy some DGL shares. Much better company and better wine.

bull....
31-08-2022, 01:38 PM
hey bull .... think we using the wrong thread .... this is the booze outfit thread

:eek2: to much of a rush to post

Southern Lad
21-10-2022, 08:05 PM
AFR Street Talk is speculating that Cameron Partners is taking soundings on behalf of Marlborough Lines to sell Yealands. Can’t imagine that Delegats will be interested - they always said there weren’t interested in Villa Maria when it was on the market last year, and Yealands is presumably in a similar market segment to Villa Maria.

Any sale will be a useful indicator of market interest in the sector, and hopefully act to underpin the Delegat share price.

Jaa
17-02-2023, 03:51 PM
Share price down but how badly is Delegat affected by the cyclone?

Pictures show lots of water through vineyards in Hawkes Bay but I thought they mostly grew their grapes in Marlborough and Barossa Valley?

Anyone know how vineyards cope with flooding? Assume it can't be good for this year's vintage which was due to start soon in Hawkes Bay/Gisborne but the vines should recover?

ralph
18-02-2023, 02:26 PM
They have a big commercial plant / winery in between Napier & Hastings so must do a lot of work there and will be affected ,probably a bit less so than seeka poor buggers

Cottagestyles
18-02-2023, 07:26 PM
As a Marlborough Lines customer/shareholder, the sooner they can can divest themselves of the Yealands nightmare foray the better! Peter's arch rival Jim coming knocking on the door would be a bitter pill for the former owner though.

Sideshow Bob
21-02-2023, 07:37 AM
https://www.nzx.com/announcements/407036

We are pleased to advise that all our people in the Hawke’s Bay are safe after Cyclone Gabrielle. Our priority remains the safety and wellbeing of our employees and their families. Delegat Group would like to thank our Hawke's Bay teams for their collective resilience, team spirit and positivity.

Our Hawke’s Bay winery and vineyards have not been damaged significantly by the cyclone and we continue to assess the impact on equipment and infrastructure at these sites. We now have access to our Crownthorpe vineyard and we are working towards further improving this access over the course of this week.

We are on track for a successful harvest in Hawke's Bay commencing around the end of February.

A further update will be provided with Delegat’s interim results, scheduled for Friday 24 February 2023.

nztx
21-02-2023, 12:32 PM
They have a big commercial plant / winery in between Napier & Hastings so must do a lot of work there and will be affected ,probably a bit less so than seeka poor buggers


Didn't look like a lot of damage to that plant, if any .. may have escaped flood damage in that locality
with just a bit of surface water

Sideshow Bob
24-02-2023, 08:50 AM
https://www.nzx.com/announcements/407282

Net $40.7m, up 11%

Grumble
31-03-2023, 10:49 AM
Has anyone got detailed analysis on DGL.

Steady profits, growing sales, flattened NPAT but potential to grow, low debt, good OCF; partly offset by cost pressures seen in H1 23 results.

I get 2021 everything was inflated but $8.30 seems like pretty good value. What am I missing?

Sideshow Bob
25-08-2023, 08:06 AM
Not to be confused with Simon and DGL Group.....

https://www.nzx.com/announcements/417036

FY23 financial summary
• 3.7 million global case sales, up 9% on FY22
• Revenues of $375.8m, up 15% on FY22
• Operating EBITDA of $120.4 million, up 7% on FY22
• Operating EBIT of 96.8m, up 9% on FY22
• Operating NPAT of $59.3 million, up 2% on FY22
• Reported NPAT of $64.8 million, up 3% on FY22

winner69
25-08-2023, 08:14 AM
That’s a pretty impressive result

Share price chart looks a bit sad but sort of showing a bottoming out

Maybe a good time to start buying

Kingfish love them …maybe they get some free Oyster Bay

Sideshow Bob
16-11-2023, 09:08 AM
Conditions starting to soften a little

https://www.nzx.com/announcements/421802

Delegat Group Limited (the Group) is today providing an update on its earnings guidance for the year ending 30 June 2024, and three-year case sale volume guidance.
The Group now forecasts to achieve global case sales of 3,614,000 cases for the 2024 year, down 1.7% on last year and 5.5% on previous guidance. With supply chains stabilising, distributors and retailers have reduced inventory holdings resulting in lower replenishment orders for the year to date.
Accordingly, the Group has revised its guidance range on Operating Net Profit after Tax to $57.0 million to $61.0 million for the year ending 30 June 2024 compared to the previous guidance of Operating Net Profit after Tax of $62.0 million to $67.0 million.
In respect of future years, the Group is committed to growing profitability in key markets through price increases to offset cost inflation. This will result in case sales volume guidance for 2025 and 2026 of 3,775,000 and 3,900,000 cases respectively, down 4.4% and 5.0% on previous guidance.
Oyster Bay continues to outperform the industry in the key US market, achieving retail sales growth of 9%1 versus the category which is flat over the last 12 months.

Filthy
16-11-2023, 10:43 AM
the Group has revised its guidance range on Operating Net Profit after Tax to $57.0 million to $61.0 million for the year ending 30 June 2024 compared to the previous guidance of Operating Net Profit after Tax of $62.0 million to $67.0 million.
In respect of future years, the Group is committed to growing profitability in key markets through price increases to offset cost inflation. This will result in case sales volume guidance for 2025 and 2026 of 3,775,000 and 3,900,000 cases respectively, down 4.4% and 5.0% on previous guidance.


minor downgrade - pretty much priced in already...

winner69
16-11-2023, 12:31 PM
Good communications by their people. …… headline is an ‘update’ but in reality a downgrade …..if it had been a guidance ‘upgrade’ they would have headlined that

But as filthy says it’s only minor at 10%

Sideshow Bob
23-02-2024, 08:51 AM
https://www.nzx.com/announcements/426749

Got to get to page 16 before see Reported NPAT was $33.4m, down 18%.

Ricky-bobby
23-02-2024, 09:38 AM
This harvest is looking very lite also which will have a big impact on next FY…

kiwikeith
23-02-2024, 10:20 AM
https://www.nzx.com/announcements/426749

Got to get to page 16 before see Reported NPAT was $33.4m, down 18%.


I thought the same thing. Normally a bad sign when the NPAT is not close to the top of the release,