Australian Vintage scores £12.5m in refinancing
As it seeks to rejuvenate its portfolio, Australian Vintage, owner of the McGuigan and MadFish brands, has secured refinancing of its debt facilities through to March 2029.
It has also issued encouraging trading figures for the second half of its financial year, which ends next month.
The new facility will allow the group, which is valued on the Sydney market at A$23 million (£12.5 million), to increase its total debt to A$128 million at a similar cost to its outstanding loans.
The new arrangement includes an extra A$5 million (£2.65m) to support the global rollout of the single serve Poco Vino brand, which is the spearhead of the company’s much revised business plan.
That follows being jilted at the altar in 2024 by Vinarchy, which abruptly terminated merger negotiations in favour of buying Pernod Ricard’s wine portfolio.
Firm financial footing secured for future
Australian Vintage is increasingly focusing on innovation-led growth through brands such as Poco Vino and Lemsecco and is expanding its presence in zero-alcohol and premium wines while growing distribution globally.
Partner Content
The company expects free cash flow in this financial year, excluding investments, to be neutral despite inflation and the disruption caused by the Middle East hostilities, with second-half cash inflow of about A$20m (£10.6m).
It predicts a more solid financial position at the end of its year with underlying cash flow improved by about $A33m (£17.6 m).
That represents a notable improvement from the cash outflow of A$9m (£4.77m) at this time last year and will bring net debt to a predicted A$90m (£47.8m) by the end of June.
Growth drivers
The company says second-half sales are running at 10% above those between July and December last year and projects its revenues to grow 5% year on year, driven by new product innovation, especially the Poco Vino range of six single serve wines.
Australian Vintage says that after just eight months on the market Poco Vino is now being sold in nine countries at a rate of about 500 bottles an hour, equivalent to 12,000 bottles a day.
It says the range will “more than double” next year with the launch of a full sparkling portfolio of Moscato and Prosecco plus a range of flavoured spritzes.
Related news
Australia comes out top in Chardonnay showdown
