Southcorp Wines Announces Annual Results; Sales Rose 17.0 Percent to A$771 Million.Business Editors/Food WritersMONTEREY, Calif.--(BUSINESS WIRE)--Aug. 24, 2000 Southcorp Wines, Australia's largest wine business, one of the world's largest producers of premium wine and the largest profit contributor for Southcorp Limited today announced their annual results for fiscal year 2000. Full-year sales rose 17.0 percent to A$771 million, with EBIT EBIT See: Earnings Before Interest and Taxes EBIT See earnings before interest and taxes (EBIT). increasing by 5.7 percent to A$145 million. The profit growth was lower than previous years largely due to soft domestic demand in April and May. "International sales are a key driver of profit growth for Southcorp with more than 65 percent of all bottled wine now exported," said Graham Kraehe, Managing Director and Chief Executive Officer of Southcorp. Total international sales for 1999/2000 rose 31 percent to A$408 million, with sales to Europe up 38 percent to A$217 million. Southcorp exported 1.7 million cases to Continental Europe Continental Europe, also referred to as mainland Europe or simply the Continent, is the continent of Europe, explicitly excluding European islands and, at times, peninsulas. and over 2 million cases to North America North America, third largest continent (1990 est. pop. 365,000,000), c.9,400,000 sq mi (24,346,000 sq km), the northern of the two continents of the Western Hemisphere. . UK sales exceeded 3.2 million cases. "A particular feature of the result was the strong growth in the Lindemans brand, which grew 34 percent overall, with Europe showing the strongest growth of 53 percent and North America at 25 percent," said Kraehe. John Handel, President of Southcorp Wines North America said, "We are extremely pleased with our year end results. 1999 was a fantastic year for the North American North American named after North America. North American blastomycosis see North American blastomycosis. North American cattle tick see boophilusannulatus. market. Lindemans Bin 65 is the top-selling Chardonnay in Canada(1), the number-one imported wine in the U.S.(2), and the fourth best-selling best·sell·er also best seller n. A product, such as a book, that is among those sold in the largest numbers. best brand of premium wine overall(3) and our Penfolds brand has broadened from a 'collectors item' to become an icon among super-premium wines." "In fiscal year 2001, we will increase our A&P expenditure by 70 percent, implement an aggressive marketing strategy and continue to promote Australia as
Note to Editors: Southcorp Wines produces and markets fine Australian wines The Australian wine industry is the fourth largest exporter in the world, [1] exporting over 400,000,000 litres a year to a large international export market that includes "old world" wine-producing countries such as France, Italy and Spain. under the following labels in North America: Lindemans, Penfolds, Wynns Coonawarra Estate, Seaview, Seppelt, Coldstream Hills and Devils Lair as well as Seven Peaks, a joint venture in the Central Coast of California The Central Coast is an area of California, United States, roughly spanning the area between the Monterey Bay and Point Conception. It extends through Santa Cruz County, San Benito County, Monterey County, San Luis Obispo County, and Santa Barbara County. . Southcorp is Australia's largest wine producer and exporter and currently ranks as the seventh largest wine company in the world. It is believed to be the world's largest producer of premium red wine and the world's largest private premium vineyard holder. Southcorp Wines is wholly owned by Southcorp Ltd., a diversified company diversified company A company engaged in varied business operations not directly related to one another. A diversified company is less likely to suffer either a collapse or a spectacular gain in earnings compared with a firm concentrating its operations in a serving global markets. (1) Canadian Wine While most of Canada is too cold for grape growing, Canadian wine is produced in Southern Ontario and southern British Columbia. The two largest wine producing regions are the Niagara Peninsula in Ontario and the Okanagan in British Columbia. Institute Red Book, 750 ml sales, June 2000 (2) IRI Iri (ē`rē`), former city, North Jeolla (Cholla) prov., SW South Korea. An agricultural center and transportation hub, it was absorbed into Iksan. Infoscan, 750 ml sales, 12 weeks ending August 15, 1999 (3) IRI Infoscan, 750 ml sales, 12 weeks ending August 15, 1999
Southcorp Wines
Financial Performance (Australian Dollars) and Sales Growth
FINANCIAL PERFORMANCE
$million 1999 2000 Change '99/00
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Sales Revenue(a) 660 771 17.0%
EBIT 137.2 145.1 5.7%
Margin (EBIT/sales) 20.8% 18.8% -2.0%
Capital Employed 1,222 1,428 16.9%
Depreciation/Amortisation 31.0 35.8 15.3%
ROCE (%) 11.2% 10.2% -1.0%
Capex 119.4 96.4 -19.3%
(a) Does not include other revenue
SALES
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Volume Value
(million cases) Growth ($million) Growth
Bottled Red 4.6 38.4% 332 33.8%
Bottled White 5.3 12.8% 257 9.0%
Sparkling 2.0 -0.7% 99 0.9%
Fortified 0.5 -3.1% 21 0.8%
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Total 9 Litre Cases 12.4 17.7% 709 17.6%
Volume
(million litres)
Soft Pack 22.5 -2.6% 33 0.4%
Other 29 22.8%
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TOTAL REVENUE 771 17.0%
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