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Australian Vintage interim CEO Peter Perrin is stepping down from his role with immediate effect as the vintner revealed its full-year results.
Recently appointed interim chair and non-executive director James Williamson will become interim CEO after Perrin decided to relinquish his role due to a “recent diagnosis of a form of cancer”, according to a company statement to the ASX today (23 August).
Perrin only took over as acting chief executive in May after Australian Vintage ended the contract of Craig Garvin “for engaging in conduct that, in its view, displayed a lack of judgement and was inconsistent with the values of the company and the high standards expected of its chief executive officer”.
The company, home to wine brands including McGuigan and Tempus Two, said today: “Peter [Perrin] has added a great depth of experience from the wine industry to Australian Vintage. The board thanks him for his dedication and service and supports his need to focus on his health and treatment, wishing him well on his road to recovery.”
Alongside the leadership change, Australian Vintage reported its full-year financial results, after a turbulent twelve months.
Earlier this week, the wine business set out a bid to improve its cash-flow and return on capital with changes to its sales strategy. In recent months, the company has been looking to raise capital and lower its debts, efforts that have included a share offer and asset sales.
The recent change in strategy involves moves to try to boost the company’s free cash flow and return on capital employed over the next three years.
Australian Vintage said the outcome of the strategy is aiming to deliver a free cash flow neutral position by the end of fiscal 2025.
It also targets free cash flow generation of between A$10m and A$20m ($6.73m to $13.46m) in fiscal 2026, and A$20m per annum in free cash flow generation by the end of 2027 and a return on capital employed of at least 8%.
The vintner’s underlying return on capital employed excluding bank debt in its financial 2024 stood at 3.9%.
It is also looking at “maximising utilisation of AVG’s modern processing facilities that have capacity to support planned growth and/ or industry partnership/ consolidation opportunities”.
In its fiscal 2024, Australian Vintage’s revenue rose 1% to A$261m. Underlying EBITS was up 24% at A$13m and underlying NPATS grew 29% to A$5m.
However, the company reported a steep drop in statutory net profit, falling 2421% compared to the previous year, posting a loss of A$93m.
The business said: “Given the trading environment, and challenging industry conditions, AVG has been able to improve revenue and earnings over the prior year in contradiction to industry trends.