Peter Lehmann Wines has nearly doubled its profit over the last year due to strong local sales and a growing business in China.
Peter Lehmann has recorded its second consecutive full-year profit, but has warned a string of small vintages could put a brake on profits, The Australian reports.
Documents lodged with the Australian Securities & Investments Commission show Peter Lehmann posted a full-year profit of $754,000 for 2013-14, up 76 percent. Sales were up 13 percent to $47.9 million.
Despite a pullback in consumer spending this year, Peter Lehmann Wines said that domestic revenue increased 39 percent to $22.8m.
“We are reviewing our strategies in the US, and we have made significant changes to our distributor network in Canada to address these issues,’’ Peter Lehmann chairman Christoph Ehrbar said in his report to shareholders.
An overhaul of its route into China bolstered sales at a time when a corruption crackdown and austerity drive has hurt sales in the region for other winemakers. “Albeit early, this change has already started to yield results with sales up 105 per cent versus the previous year,” Ehrbar said.
Ehrbar warned that historically low vintages in 2012, 2013 and 2014 meant costs would rise with no bulk wine available for sale. Peter Lehmann plans to grow its revenue base while addressing costs by better sourcing and supply strategies, which should benefit increased profit in two to three years.