• On track to deliver in line with FY26 sales growth guidance
• Cash and net debt remain in line with guidance, expect neutral free cash flow
• Innovation accelerating in distribution and sales, driving full year outlook

Australian Vintage Ltd (AVG) has reported its 1H FY26 results, with sales largely unchanged versus the prior year. The company remains on track to deliver in line with its FY26 sales growth guidance, with cash and net debt also in line with previous market guidance. Key growth drivers and partnerships are set to accelerate growth in the second half, including the strong performance of leading innovations like Poco Vino and Lemsecco Spritz, the recent acquisition of the MadFish brand, and a new distribution partnership for the Graham Norton brand in the UK and Europe. The company is also seeing growth in new markets like North America and Asia through innovations and no-and-low alcohol offerings. To manage the shifting wine market dynamics, AVG is responding with a series of targeted actions, including exiting vineyard leases, not renewing some contracts, and reviewing capacity optimization at its Buronga Hill Winery. The company's strategy of holding and expanding its core brands, growing premium and lighter styles through acquisitions and partnerships, and driving accelerated growth via innovation positions it well for success in the evolving wine market.

AVG expects to deliver neutral free cash flow, excluding strategic investments, for the full FY26 year.

AVG is well-positioned for success in the evolving wine market, with its strategy of holding and expanding its core brands, growing premium and lighter styles through acquisitions and partnerships, and driving accelerated growth via innovation.