• Cost out programs, innovation and market expansion driving the lowest normalised cash outflow in 4 years
• Re-organised leadership team to win
• Growth in the UK, double-digit growth in emerging markets China, rest of Asia and North America

Australian Vintage Ltd (AVG) has reported its 1H FY25 results, highlighting its focus on delivering free cash flow and shareholder value. The company's cost-out programs, innovation, and market expansion initiatives have driven the lowest normalised cash outflow in 4 years, providing confidence in delivering full-year free cash neutrality. AVG has also re-organised its leadership team to better position the company to win, with growth in the UK and double-digit growth in emerging markets like China, the rest of Asia, and North America mitigating the impact of commercial market declines. The company expects positive H2 performance to drive free cash flow neutrality for FY25, with key actions already underway to deliver positive free cash flow targets for FY26 and beyond. These include managing the entire supply chain to drive cash improvement, leveraging innovation and core brand performance, and pursuing strategic partnerships to accelerate growth in key international markets and optimise operational efficiencies.

Positive H2 performance expected driving free cash flow neutrality, including growth in the UK, double-digit growth in emerging markets China, rest of Asia and North America, integration and consolidation of opportunities, ongoing reduction in cost base, and leveraging the balance sheet to actively manage working capital. For FY26 and beyond, key actions are already underway to deliver positive free cash flow targets, including managing the entire supply chain, leveraging innovation and core brand performance, the global launch of Poco Vino, and pursuing strategic partnerships to accelerate growth and optimise operational efficiencies.