Foley Wines Limited Half Yearly Report to 31 December 2020

KEEPING THE COURSE WEDNESDAY, FEBRUARY 24 2021 - Foley Wines Limited today announced a 5.8 % decrease in reported after tax profit of $2,566,000. Ongoing impacts of the global pandemic impacted the key channels of restaurants, hotels and airlines for its premium brands, with total cases sales down 7 % to 281,000. Compounding the situation was logistic issues which meant long delays to shipping products around the world, without these delays, the company believes case sales would have been much closer to last year's volume. New Zealand performed well notwithstanding the challenges of Covid-19 with case sales up 8 % to 92,000. The key December period in particular was a standout with Foley Wines' brands growing 14% compared with a 3.2% decline in the still wine category. The New Zealand market is responding positively to the company's sustainability practices, particularly around using New Zealand recycled glass along with the latest initiative using labels made from a sugar cane which is a highly renewable material. Last year during lock down the company announced that it would be building a new purpose-built wine barrel facility, distillery for Lighthouse, tasting room and restaurant in Martinborough. This project is progressing well with the barrel facility on track for completion in March and the restaurant is on track for this summer. The company believes that this investment is critical in continuing to develop its Martinborough brands' into household names over time. Mark Turnbull, Foley Wines CEO said "while the last 9 months has been challenging, we are committed to our strategy of building brands that satisfy the needs of discerning retailers and restaurants around the world. We believe building brands is the best way to create long term value for our shareholders, our growers and the broader New Zealand economy. In the past year we have secured some strong new routes to market for our premium portfolio, which under pins the quality of our portfolio as well as reinforcing the appeal of our rather unique business model here in New Zealand". - END - Authorised for public release. For further information please contact: Mark Turnbull CEO, Foley Wines Limited PO Box 67, Renwick, 7243, Marlborough Tel: +64 21 714 885 Email: mark@foleywines.co.nz Notes to Editors: Foley Wines is a collection of iconic wineries and brands from New Zealand's most acclaimed wine regions. Each with a unique story of New Zealand to tell, our wineries are linked by a common unrelenting purpose; to make great wine that people love to drink around the world - made by land & hand. Our ambition is to be New Zealand's most revered wine group through the ownership of iconic wineries in New Zealand's most acclaimed regions, inspiring the most discerning retailers and restaurants around the world. Established in 1988 as Grove Mill Wine Company Ltd, the company merged with Foley Family Wines NZ Limited in September 2012. The Company listed on the NZAX Board of the NZ Stock Exchange when this was first established in November 2003 and migrated to the NZX Main Board and changed its name to Foley Wines Limited (ticker code FWL) on 3 December 2018. Foley Wines' major shareholder is Bill Foley who is a major investor in the US wine industry. His company Foley Family Inc. is a Top 20 wine company in the US, owning 17 wineries with over 150 dedicated sales personnel in the US market. Foley Wines wholly owns Martinborough Vineyard and Te Kairanga and the Lighthouse Gin brand in Martinborough, Grove Mill and Vavasour in Marlborough, and Mt Difficulty in Central Otago. End CA:00368131 For:FWL Type:HALFYR Time:2021-02-24 11:40:18