Australian Vintage Limited (ASX:AVG)
concedes it expects first half sales and profits for the current financial year to be lower amid tough conditions in the wine industry.
The wine maker expects sales to be down six per cent on the same period last year, with declines being experienced mainly in lower margin products such as casks.
Chairman Ian Ferrier says the tough conditions faced by the wine industry continue and recovery is expected to be protracted as big retail chains continue to put downward pressure on prices.
Despite the hardships, Australian Vintage remains confident its full year profits will be in line with last year.
Australian Vintage booked a net profit of $7.1 million for fiscal 2012.