• Poco Vino™ brand launch exceeding expectations with over $10 million AUD net sales forecast for FY26
• Lemsecco™ brand to contribute over $5 million AUD in FY26 net sales
• Madfish brand acquisition to expand AVG's portfolio in the UK market

Australian Vintage Ltd (AVG) is providing an update on its net sales, Poco Vino™ update, Madfish acquisition, inventory, and net debt, along with revised projections for the FY2026 fiscal year. AVG is in the early stages of a turnaround to address declining sales and negative cash outflows in recent years. The company estimates fiscal 2026 will be a transformational year, with the launch of Poco Vino™ in the UK and Australia, and the acquisition of the Madfish brand, which is anticipated to be earnings enhancing from year one. Pre-sales for Poco Vino™ have already exceeded expectations, leading the company to upgrade its FY26 net sales estimate to over $10 million AUD. The Lemsecco™ brand is also expected to contribute over $5 million AUD in FY26 net sales. While the current fiscal year (FY25) is anticipated to see a 3% decline in sales, the company is forecasting mid-single digit sales growth for FY26. The higher inventory balance projection for FY25 is a consequence of declining sales and inventory build for Poco Vino™ and Lemsecco™, leading to a revised expectation of a $13 million cash outflow for the full year. However, the company is confident that the sales growth initiatives and the reduction in wine intake will enable the group to generate sustainable free cash flow in FY26 and beyond.

For FY26, the company estimates sales growth of mid-single digits and a significant reduction in its wine intake as long-term grower contracts roll off over the next three years.

The company is confident that the sales growth initiatives, including the launch of Poco Vino™ and Lemsecco™, as well as the acquisition of the Madfish brand, will pivot the group on a growth trajectory and enable it to generate sustainable free cash flow in FY26 and beyond.