Australian Vintage Ltd (ASX:AVG), a leading Australian wine producer and marketer, has announced the successful refinancing of its structural debt. The company secured new finance facilities totalling $128 million until March 2028, with an option to extend to 2029. This includes a $5 million increase to support the global expansion of its innovative Poco Vino brand, particularly into the USA, with the interest rate remaining consistent. The company affirmed its FY26 guidance for neutral free cash flow (excluding investments), despite increased costs from global events and ongoing inflation.
Australian Vintage reported a significant turnaround in its second-half cash generation, achieving a positive $20 million, a substantial improvement from a negative $9 million in the prior year’s comparative half. Net debt is projected at $90 million for the full year, reflecting strategic investments. The company is witnessing strong sales momentum, with its second-half sales run rate tracking 10% higher than the first half. Revenue growth is projected at 5% in the second half, reversing a 2% decline in H1. Poco Vino is a key driver, now in over 8,000 stores globally, with expansion plans targeting an annualised run rate exceeding $20 million into FY27.
Lemsecco, with 116% growth in Australia, and the newly acquired MadFish brand, along with the Graham Norton distribution in the UK, collectively add over $12 million in annualised net sales. McGuigan continues to outperform in Australia and remains the top zero-alcohol still wine brand in the UK. The company is actively managing inventory down, expecting to end the year with approximately 90 million litres in bulk wine storage. Though shipping challenges may delay some sales into FY27, the company’s cash target is not at risk, with management anticipating accelerated growth and positive group cash flow in FY27.
