Forum Topics AVG AVG AGM 2020
sam
Added 6 years ago

Management have today provided a Q1 update, and some guidance on the FY21 result as part of the AGM presentation.
I had anticipated lower costs and growth in sales, however the levels indicated today far exceeded my expectation.

For Q1, sales up 20% on PCP (Pre-Covid) - 27% for the 4 main brands.
In terms of guidance, costs anticipated to be lower due to a better yield from the vinyards and also resulting from prior infrastructure and restructuring investment.
Sales growth expected to continue, and NPAT guidance of 18-20M, or 67-85% higher than prior year (with the caveat of no further covid or brexit impact).

This is a very positive update, as partially reflected by the SP movement today.
I would suggest that should management hit this guidance, and be able to sustain or even continue to grow these earnings, there is significant upside to the current share price (even after today's gains).

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