Full Year 2024 Australian Vintage Ltd Earnings Call Transcript
Key Points
- Australian Vintage Ltd (ASX:AVG) achieved a $261 million revenue, marking a 1% growth over the previous year.
- The company grew its underlying EBITDA by 12% and EBITS by 25%, despite a challenging macroeconomic environment.
- The Americas market saw a significant growth of 28% over the prior year, contributing to the company's expansion in emerging markets.
- Australian Vintage Ltd (ASX:AVG) continues to lead in the no-and-low wine category, with a 20% revenue growth in this segment over the prior year.
- The company has secured liquidity through increased bank facilities and a finalized capital raise, providing a buffer against inflation pressures and enabling future investments.
- The share price of Australian Vintage Ltd (ASX:AVG) has collapsed, reaching an all-time low, causing significant concern among shareholders.
- The company experienced a negative free cash flow of $7 million in FY24, excluding capital raise and asset sale.
- There were substantial costs incurred in FY24, including redundancies and strategic review costs, which are not expected to be repeated.
- The company is undergoing a significant transition with a refreshed Board and the departure of the previous CEO, creating potential instability.
- Despite the positive revenue growth, the overall headline growth over the last five years has been just 1%, indicating a slow pace of expansion.
Good afternoon, everyone, and welcome to the financial year 2024 Australian Vintage financial final results. I thought I'd start just by introducing who I am and giving you some context. I am a co-founder of a property investment company called Wentworth Williamson & Management. We are value driven investment house, and we do care about growth, but we also pay a lot of attention to balance sheets and free cash flow. And I think that's quite important to put that in context, given what you'll see in this presentation today.
In recent times, we've watched the share price collapsed, and we could have walked away or increase our skin in the game and play a more active role. So clearly, we adopted to do the latter. We made that decision for three main reasons. The first one, this business is trading at a fraction of its net assets. We believe this business can grow, and we also believe this business can generate really good cash flow.
I have to say post a deeper engagement with the Australian
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