Montana loss; sales rose 50 per cent

Press, Volume CXVI, Issue 34147, 7 May 1976, Page 16

Montana loss; sales rose 50 per cent

Montana Wines, Ltd, says in the halfyearly report that sales for the six months to December 31 increased more than 50 per cent compared with revenue for the previous corresponding period, but there was a net loss.

However, while early indications showed that the company was trading marginally in profit, the costs of closing down the Titirangi plant, the setting-up at Tamaki, and other expenses, reduced the earlier trading profits to an extent which resulted in a loss for the half-year, before adjusting for deferred taxation.

Operating costs at Tamaki were high during the settling-in of new staff, and the start-up of new machinery. It was necessary to contract-out some bottling during the period to meet the demand for some products, and this involved additional cost, which reduced margins. Steps are being taken to

sell land and other assets which are surplus to requirements. To date the Avondale propagation-unit and about 1000 acres of land at Blenheim have been either sold or are under contract for sale. The Weinkeller division and Petone wholesale-outlets earned profits. The new vineyard, at Marlborough, has been harvested, and the small crop of quality grapes has confirmed all expectations. The first commercial quantities of grapes are expected for the next vintage, in 1977, and plans are progressing for a new winery to process the yield.