Despite the loss, total operating revenue edged up by AU$1 million to AU$257.6 million as the group reshaped its portfolio. Operating cash flow reached AU$4 million, with free cash flow excluding investments at AU$2 million — a performance the company described as "outstanding" given persistent inflation and supply chain disruption linked to conflict in the Middle East.
Australian Vintage said the results were consistent with its strategic plan and provide "a solid foundation for FY27 and beyond."
Cutting excess stock has been central to the recovery effort, with inventories now down to approximately 90 million litres as management works to improve working capital. At the same time, the company has concentrated investment behind higher-potential brands and formats.
McGuigan remains the world's top-selling zero-alcohol still wine brand and has held its position in the UK market, according to the company.
The standout development of the year has been Poco Vino, a miniature wine format now selling more than 2.2 million units and described by the company as the fastest-growing glass-format mini wine brand in the UK.
Australian Vintage said Poco Vino has "transformed" its revenue outlook, appealing to consumers through its smaller format and distinctive shelf presence, and is helping recruit younger consumers back into the wine category by leveraging the shift toward convenience. The company expects Poco Vino to generate more than AU$20 million in net sales this financial year.
Its recently acquired MadFish brand has also outperformed expectations, with sales accelerating since the acquisition.
Australian Vintage described the past year as one of "significant transformation," citing cost reductions, strategic acquisitions and product innovation as key drivers of a stronger, more agile business. The company expects to reach a net positive cash position across FY27, which would allow it to reduce debt for the first time in several years, with continued growth from Poco Vino and further acquisitions central to that strategy.
The results follow a difficult period for Australian Vintage, which came close to collapse in 2023 and has since focused on repairing its balance sheet, reducing inventory and repositioning its brand portfolio.
