Australian Vintage Ltd (AU:AVG) has released an update.
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Australian Vintage Ltd has announced a new strategy following a board renewal, aiming to enhance free cash flow and Return on Capital Employed (ROCE) over the next three years, with targets of +$20 million in annual free cash flow and +8% ROCE by FY27. The strategy involves investing in markets without discounting core brands, resulting in a non-cash inventory impairment of ~$36 million and other asset impairments, but it’s expected to strengthen market position despite current industry challenges. Additionally, the company has reported a 1% revenue growth to $261 million and significant increases in various financial metrics for FY24, setting a positive trajectory towards achieving its strategic goals.
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