The Australian Wine Industry
CONTENT
Title Page
Introduction Background & Issues 1 - 2
Financial Analysis 3 8
Summary of Financials 9 - 13
Significant key opportunities and risks for the company 14 - 15 and investors in McGuigan
Other financial and non-financial factors that impact upon 16
McGuigan 's performance and attractiveness as an investment opportunity Limitations of the analysis & implications of these limitations for 17 - 18 any investment decision
Appendix A: References 19
Background & Issues
The Mcguigan interest in the Australian Wine Industry goes back four generations. Owner Patrick McGuigan the first of four generations to enter the wine industry was a dairy farmer by trade.
Percy McGuigan 's career was spent at Penfolds. Prior to retirement in 1968 Percy purchased Dalwood estate and renamed it Wyndham Estate. Two years later he sold it to his son Brian McGuigan.
Brian McGuigan has been involved in the wine industry for over thirty five years. He developed Wyndham Estate Wine Company in the Hunter Valley and built sales in excess of 1,250,000 cases to become the leading exporter of Australian wine.
In 1992 Wyndham Estate was acquired by French Company Pernod-Ricard group, Orlando Wines. Later that year, after the acquisition Brian McGuigan established a new company McGuigan Wines as a publicly listed company.
In 2001 McGuigan wines merged with Simeon Wines to create Australia 's 4th largest wine company and in October 2003 McGuigan Simeon Wines Limited (MSWL) purchased Miranda wines.
MSWL distributes to over 25 countries including United States, Ireland, New Zealand, Germany and other mainland countries in Europe. They export over 20 million litres (30% of MSWL wine production) annually. (www.mcguiganwines.com.au)
MSWL reported a 2004/05 net profit of $35.9 million, down 10.8% on the previous year. Brian McGuigan believes this is mainly due to the oversupply of grapes and does not
Title Page
Introduction Background & Issues 1 - 2
Financial Analysis 3 8
Summary of Financials 9 - 13
Significant key opportunities and risks for the company 14 - 15 and investors in McGuigan
Other financial and non-financial factors that impact upon 16
McGuigan 's performance and attractiveness as an investment opportunity Limitations of the analysis & implications of these limitations for 17 - 18 any investment decision
Appendix A: References 19
Background & Issues
The Mcguigan interest in the Australian Wine Industry goes back four generations. Owner Patrick McGuigan the first of four generations to enter the wine industry was a dairy farmer by trade.
Percy McGuigan 's career was spent at Penfolds. Prior to retirement in 1968 Percy purchased Dalwood estate and renamed it Wyndham Estate. Two years later he sold it to his son Brian McGuigan.
Brian McGuigan has been involved in the wine industry for over thirty five years. He developed Wyndham Estate Wine Company in the Hunter Valley and built sales in excess of 1,250,000 cases to become the leading exporter of Australian wine.
In 1992 Wyndham Estate was acquired by French Company Pernod-Ricard group, Orlando Wines. Later that year, after the acquisition Brian McGuigan established a new company McGuigan Wines as a publicly listed company.
In 2001 McGuigan wines merged with Simeon Wines to create Australia 's 4th largest wine company and in October 2003 McGuigan Simeon Wines Limited (MSWL) purchased Miranda wines.
MSWL distributes to over 25 countries including United States, Ireland, New Zealand, Germany and other mainland countries in Europe. They export over 20 million litres (30% of MSWL wine production) annually. (www.mcguiganwines.com.au)
MSWL reported a 2004/05 net profit of $35.9 million, down 10.8% on the previous year. Brian McGuigan believes this is mainly due to the oversupply of grapes and does not
References: Kimmel et al, 2003 p520, figure 11.22 Deloitte Annual Financial benchmarking Survey for Australian Wine Industry – Vintage 2004