De Bortoli toasts rising equities
Rising equity markets boosted the winemaker's extensive share portfolio, with costs at its wineries also helping the bottom line.
Documents obtained by BusinessDay show De Bortoli Wines - the third-generation group founded by Vittorio and Giuseppina De Bortoli in 1928 - recorded a full-year net profit of $5.041 million for fiscal 2013. Revenue was slightly down at $166.63 million from $167.65 million.
The previous year's loss came after the winemaker's equities portfolio sank by nearly $50 million after a number of unfortunate investments, including a large exposure to north Queensland mining giant Kagara.
But rising markets and better investments helped turn this around.
De Bortoli's sharemarket dealings, led by chief executive Darren De Bortoli, have often been a major contributor to the accounts, with profits from its share trading eclipsing its wine earnings for fiscal 2011.
The winemaker said that, in the past year, it had also received a $4.8 million grant from the federal government as part of the Clean Technology Food and Foundries Investment Program delivered by AusIndustry.
It matched an investment of $11 million by the De Bortoli family to install solar energy at its facilities.
De Bortoli is the first large family wine company to report this year's earnings. Others follow soon, throwing a light on the performance of some of Australia's most well-known wine brands.
Frequently Asked Questions about this Article…
De Bortoli Wines returned to profitability thanks to rising equity markets that boosted their extensive share portfolio, along with cost management at their wineries.
In fiscal 2013, De Bortoli Wines recorded a net profit of $5.041 million, with revenue slightly down at $166.63 million compared to $167.65 million the previous year.
The previous year's loss was due to a nearly $50 million decline in their equities portfolio, largely because of unfortunate investments, including a significant exposure to the north Queensland mining giant Kagara.
De Bortoli's sharemarket dealings, led by CEO Darren De Bortoli, have been a major contributor to their financial performance, with profits from share trading sometimes surpassing their wine earnings.
De Bortoli Wines received a $4.8 million grant from the federal government as part of the Clean Technology Food and Foundries Investment Program, which they used to install solar energy at their facilities.
De Bortoli Wines invested in sustainability by installing solar energy at their facilities, matching an $11 million investment by the De Bortoli family with a $4.8 million government grant.
Better investments played a crucial role in De Bortoli Wines' financial turnaround, as rising markets and improved investment choices helped recover from previous losses.
Yes, De Bortoli Wines is the first large family wine company to report this year's earnings, setting a precedent for other well-known Australian wine brands.
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