A $27 million write-down of legacy inventory drove reported EBITDAS to negative $35 million, while net debt finished at $89 million against $90 million guidance. Australian Vintage has reported statutory revenue of $258 million for FY26, up $1 million on the prior year, and a reported net loss after tax and significant items of $64 million, compared with a $6 million loss in FY25.
Reported EBITDAS was negative $35 million, down $50 million on FY25. The company said the figure included a $27 million inventory impairment, $6 million in restructuring costs, $4 million in lease exits and a $3 million foreign exchange impact from a strengthening Australian dollar, with no asset sales during the year. The NPATS figure includes those items plus a $5 million tax loss write-off.
Operating cash flow was positive $4 million, against negative $8 million in FY25. Australian Vintage said it was the first positive operating cash flow since FY22.
Underlying free cash flow, which excludes $16 million of one-off growth investments and restructuring costs, was positive $2 million, against negative $13 million a year earlier. Reported free cash flow was negative $14 million, an improvement of $5 million.
Net debt finished at $89 million, up from $75 million in FY25, and below the company’s guidance of approximately $90 million.
The company said the $27 million impairment writes down legacy inventory and moves it to what it described as an in-balance inventory holding, with capital previously tied up in bulk wine inventory to be recycled into its brand portfolio and into repaying debt in FY27.
Inventory now sits at around 90 million litres, and the company said it doesn’t forecast any further material inventory impairments.
In the first half, the company exited another vineyard lease and did not renew contracts, which it said reduced exposure to excess red grape varietals. In the second half it continued selling bulk inventory holdings for cash.
Statutory first half revenue declined 1.7 per cent year-on-year and second half revenue grew two per cent, which the company attributed to its innovation and acquisitions.
Total Australian Vintage sales grew three per cent in Australia, with the company maintaining a six per cent share of the UK wine market.
On the brand portfolio, the company reported:
McGuigan held flat in Australia and declined in the UK in line with the Australian wine category. Australian Vintage said it remains the number one zero-alcohol still wine in the world.
Poco Vino sold more than 2.2 million units globally across six SKUs in 11 months and is selling or being shipped to 12 markets. The company said it is the fastest growing glass format minis brand in the UK on the latest quarter.
Poco Vino net sales are projected to exceed $20 million in FY27, with eight additional SKUs across Prosecco and flavoured spritzes launching in ANZ in October, and a premium Atlas Series range launched at the TFWA Global Travel Retail show, with airport and on-premise launches planned for February 2027 at a recommended retail price of $20 a unit against $7 for the core range.
Lemsecco Australian scan sales rose 116 per cent year-on-year, with distribution building in the USA and China.
MadFish and the Graham Norton distribution agreement are contributing an annualised net sales run rate of more than $12 million for FY27. MadFish delivered 25 per cent sales growth over the past 26 weeks.
Australian Vintage said investments in Poco Vino and Lemsecco, the MadFish acquisition and the onboarding of Invivo distribution in the UK represented two thirds of the approximately $16 million invested during the year, delivering a combined internal rate of return of 69 per cent on a post-tax cash flow basis.
Financing facilities have been extended to $128 million through to March 2028 with an option to extend a further year to 2029, an increase of $5 million on the previous arrangement, at interest rates in line with previous rates. Australian Vintage flagged the refinancing in June, citing the global expansion of Poco Vino including a US launch in FY27.
For FY27, the company said it expects to deliver a net positive cash position for the full year and to reduce debt for the first time in years.
Australian Vintage told the market in August 2025 that FY26 would be a transformational year, targeting topline growth of 5 to 8 per cent. It reported softer first half sales in February with net debt of $110 million at 25 December.
