• Reduce inventory by +40m litres and achieve free cashflow of +$20m
• Grow revenue through innovation to deliver over +$40m and expand into Asia & North America
• Accelerate topline growth, optimise cost base, and strengthen balance sheet

Australian Vintage Ltd (AVG) has presented its FY25 full year results, highlighting a comprehensive strategic plan to drive the business forward over the next 4 years. The key elements of the plan include reducing inventory by over 40 million litres, achieving free cashflow of +$20 million, growing revenue through innovation to deliver over $40 million in new sales, and expanding into the high-growth Asia and North America markets. The company is also focused on accelerating topline growth, optimising the cost base, and strengthening the balance sheet through these initiatives. In FY25, AVG expects to see a significant year-over-year improvement in cash generation, with a trajectory to return to positive cash flow in FY26. This will be driven by disciplined cost control, operational efficiencies, and a focus on optimising the supply chain and grape sourcing. The company is also investing in core brand growth, such as McGuigan, while launching innovative new products like Poco Vino and Lemsecco to capture emerging consumer trends. Overall, AVG is well-positioned to execute on its strategic plan and deliver the targeted financial outcomes, though these are subject to various risk factors.

AVG is targeting Free Cash Flow of $20M+, ROCE of 8%+, and Earnings in line with Free Cash Flow in FY28.

AVG is focused on accelerating topline growth, optimising the cost base, and strengthening the balance sheet over the next 4 years. Key initiatives include reducing inventory, driving innovation and new market expansion, and improving operational efficiencies across the supply chain.