Australian Vintage Limited (AVL) has announced a Board renewal, with three new non-executive directors, as well as a change in strategy aimed at improving free cash flow and return on capital employed (ROCE) over the next three years.
The new Board members are James Williamson, Elaine Teh and Michael Byrne, and the trio will join the Board subject to relevant checks and approvals.
Williamson is the Chief Investment Officer of Wentworth Williamson and brings with him of 20 years of experience in financial markets including significant experience in covering alcoholic beverages as an analyst, he will also join as AVL’s Interim Chair.
Teh is the founder and executive Chair of Octopus Global Holdings, which is the Company’s current distributor in Singapore and Malaysia. Octopus Global is the sole representative of many large global distributors, including Diageo, Paulaner, San Miguel, Australian Vintage, Fever Tree, ABInBev and more.
Mr Byrne has over 30 years experience as a non-executive director and leader within the logistics, supply chain, retail and property sectors, currently serving on the Boards of Ausgrid Asset, Management, Finance and Operator Partnership, NSW Ports, and Peel Ports UK.
Peter Perrin remains on the board and is a current non-executive director and acting CEO.
A spokesperson for the Board said: “The appointment of Mr Williamson, Ms Teh and Mr Byrne continues the Board renewal process. Mr Williamson will be Interim Chair, Ms Teh represents a key strategic partner to further drive growth across key Asia markets and Mr Byrne brings leadership and technical expertise within the logistics, supply chain and retail sectors.”
In terms of the new strategy, AVL said it is targeting a free cash flow of +$20m per annum by the end of FY27 and a ROCE of eight per cent in the same time frame.
In a statement to the ASX, AVL said: “In an environment where the cost of doing business continues to increase, generating cash strengthens AVG’s balance sheet and competitive edge.
“Australian Vintage derives approximately two thirds of its revenue from export related markets. It has maintained and grown market share over the past few years, whilst delivering a strong premiumisation and innovation program, currently representing one third of its margin. However, the market that Australian Vintage operates in is challenged by deep competitor discounting, with AVG identifying a number of revenue growth opportunities within those markets that it is currently not accessing.”
The company said it will reveal further details on its change of strategy when it releases its FY2024 financial results on Friday, 23 August, and The Shout will bring you that news.
