• Best normalised cash outflow result in four years
• Revenue and market share held steady despite industry challenges
• Growth in Asia, China and the rest of Asia represent significant upside

Australian Vintage Ltd (ASX: AVG) reported its first-half 2025 financial results, highlighting an improved cash performance amid challenging industry conditions. The company achieved its best normalised cash outflow result in four years, with a total normalised free cash flow after lease payments improving by $11 million. This was driven by stable revenue, rigorous cost management, and operational efficiencies. Revenue and market share were held steady in the UK, Australia, and New Zealand, with growth in white and sparkling wine offsetting declines in low-price reds. The company also saw growth in Asia, with China and the rest of Asia representing a significant upside opportunity, strengthened by partnerships with COFCO and Oceanus. Australian Vintage is focused on delivering profitable growth while maintaining strong cash flow control, with initiatives including investing in high-margin brands and innovation, expanding in China and Asia, leveraging the balance sheet, and optimising operations. The company is targeting free cash flow neutrality by FY25, $10-$20 million in FY26, and $20 million+ per annum by FY27, with a return on capital employed (ROCE) of 8%+ by FY27.

Free cash flow neutral by FY25, then $10m-$20m in FY26, and $20m+ per annum by FY27. ROCE of 8%+ by FY27.

Australian Vintage is focused on delivering profitable growth while maintaining strong cash flow control. The company sees significant upside in Asia, particularly in China, and is pursuing partnership, consolidation, and acquisition opportunities to premiumise its portfolio.