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Ste Michelle Wine Estates sees 48.6% profit increase

Published:  23 July, 2008

Ste Michelle Wine Estates has posted 48.6% profit increases for its fourth quarter results for 2007.

Net sales at the wine label were up 30.5% also as parent company UST announced a 9.7% increase for total net sales over the same period.

For 2007 as a whole, Ste Michelle experienced a 25.4% increase in net sales and a 35.9% jump in operating profits.

In the fourth quarter 2007, net sales for Ste Michelle Wine Estates increased to $123.4 million (62.6m) as total premium case volume increased 20.2% to 1.8m. Strong growth was driven by all major brands, especially Chateau Ste Michelle, Antinori, Erath and the recently acquired Stag's Leap Wine Cellars.

Net sales growth, improved product mix and a state excise tax refund that benefited the quarter by $4.8m (2.4m), led to a 48.6% increase in operating profit to $24.8m (12.6m).

Theodor P Baseler, Ste Michelle Wine Estates president, said: "The strong results for the year are a great indication that our 'string of pearls' strategy is working.

"With top-rated wineries and powerful brands, Ste Michelle Wine Estates remains the fastest growing top-10 wine company in the US."