Australian Vintage Locks in $128M Refinancing to Fund Poco Vino’s US Push
AVG secures $128m refinancing as H2 momentum builds toward FY27 growth
Australian Vintage Limited (ASX: AVG) has agreed finance facilities totalling $128 million, secured through to March 2028 with an option to extend for an additional year to 2029, subject to signing of final documentation. The facilities represent a $5 million increase on prior arrangements, with the additional capacity specifically earmarked to support Poco Vino’s global expansion, including a USA market entry targeted for H2 FY27. Importantly, the refinancing rate is in line with the previous interest rate, meaning no additional cost burden for the business.
The announcement comes at the close of what AVG has described as a “transformational year,” with the refinancing confirming lender confidence at a point when operational momentum is visibly accelerating into FY27.
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Turnaround in numbers — how FY26 unfolded
The financial story of FY26 is one of a company executing on a committed turnaround. H2 cash generation reached +$20 million, representing a ~$29 million swing versus the -$9 million recorded in the prior comparative half, excluding asset sales. That result places AVG on track to achieve free cash flow neutrality for the full year, excluding investments, a target the company had set as its core deliverable for the period.
Full-year net debt is expected to close at approximately $90 million by 30 June 2026, in line with previous guidance. On an underlying basis, full-year cash flow is approximately $33 million better than FY23, excluding investments and asset sales, which the company had specifically cited as its long-term strategic benchmark.
The improvement did not come without deliberate sacrifice. In H1, AVG deployed approximately $15 million in targeted investments to drive H2 returns. Two-thirds of that capital was directed at top-line growth initiatives, spanning Poco Vino and Lemsecco innovation launches, the acquisition of MadFish internationally, and the onboarding of Invivo UK distribution. These growth investments are delivering a combined internal rate of return (IRR) of 69%. The remaining third targeted fixed supply chain cost reductions through lease exits and reduced staffing, with payback expected within a year.
Cost headwinds from the Iran war and ongoing inflation were absorbed during the period without derailing the cash target. One near-term risk flagged by management relates to shipping and container availability: with over 10% of full-year sales scheduled for the final month of the financial year, some revenue could slip into FY27. However, management has confirmed the cash target is not at risk from this timing uncertainty.
Looking ahead, achieving net cash flow positive in FY27 would mark the first time AVG has delivered positive group cash since 2021.
| Metric | FY26 H2 Result | Prior Year H2 | Change | Notes |
|---|---|---|---|---|
| H2 cash generation | +$20m | -$9m | ~+$29m | Excl. asset sales |
| Full-year net debt | ~$90m | — | In line with guidance | As of 30 June 2026 |
| Underlying cash vs FY23 | — | — | ~+$33m improvement | Excl. investments & asset sales |
| Total investments | ~$15m | — | — | Two-thirds in growth initiatives |
| Growth initiatives IRR | 69% combined | — | — | Poco Vino, Lemsecco, MadFish, Invivo |
Poco Vino leads the growth story — and it’s just getting started
Eight months into its market life, Poco Vino has emerged as AVG’s standout growth platform. The brand is now available in more than 8,000 stores across over 9 countries, selling approximately 500 bottles per hour, the equivalent of roughly 12,000 bottles per day. Sales are on track to exceed $20 million in annualised run rate into FY27.
The brand’s current range of 6 still wines is set to more than double in FY27 with the addition of 8 new SKUs across Moscato, Prosecco, and a range of flavoured Spritzes, forming a full sparkling portfolio alongside the existing core range. AVG also plans to move Poco Vino into the premium segment with the launch of the ‘Atlas Series’ in Global Travel Retail stores worldwide at a recommended retail price of $25. The USA market entry, targeted for H2 FY27, is directly supported by the $5 million facility increase agreed as part of the refinancing.
Tom Dusseldorp, Chief Executive Officer
“FY26 was a transformational year to demonstrate to shareholders that a turnaround is possible. We remain on track to achieve the Company’s core deliverable of neutral underlying cash flow.”
Supporting brands adding scale
AVG’s broader portfolio is contributing meaningfully to the group’s growth momentum heading into FY27:
- Poco Vino annualised run rate: Sales expected to exceed $20 million into FY27, with a full sparkling portfolio and Atlas Series premium launch adding further breadth.
- Lemsecco: Scanning +116% in Australia over the last year, with the brand now selling in both the USA and China.
- MadFish and Graham Norton UK distribution: Adding an annualised run rate of over $12 million in net sales for the group; the last 12 weeks showed 54% growth versus the same period last year, with new ranging driving performance across Tesco, Waitrose, and Independents in the UK and Ireland.
- McGuigan: Outperforming the Australian market with volume scanning +1% versus total red wine in its price range at -10%; in the UK, McGuigan holds the No. 1 position in zero still wine, growing +7% in the last year, with broader UK branded performance broadly in line with the Australian wine segment at -4% amid ongoing tax reform impacts.
At a total brand level, AVG is holding flat at 6% of total UK wine market share. In Australia, AVG is scanning +4% versus category growth of 0.7%, reflecting a meaningful share gain in its domestic market.
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What’s next — FY27 targets and the road to positive cash flow
AVG enters FY27 with a clear financial objective: +$10 million underlying cash flow, excluding investments. This represents the next step in a multi-year recovery plan, moving from the neutral underlying cash position targeted in FY26 to a genuinely positive one. Achieving this would mark the first time AVG has delivered positive group cash since 2021, a return to positive territory rather than an unprecedented milestone.
The H2 FY26 sales run rate is already +10% ahead of H1, with H2 revenue growth of +5% versus the prior comparative period. Inventory levels are also being actively managed down, with bulk wine storage expected to close at approximately 90 million litres, representing what management describes as a balanced inventory position with reduced working capital requirements.
The four key catalysts management has identified for FY27 are:
- Poco Vino USA launch in H2 FY27, supported by the increased refinancing facility.
- Sparkling range rollout — 8 new SKUs including Moscato, Prosecco, and flavoured Spritzes.
- Atlas Series Global Travel Retail launch at $25 recommended retail price.
- MadFish and Graham Norton UK expansion, building on 54% recent growth momentum.
With refinancing secured, lender confidence confirmed, and growth platforms executing across multiple geographies, AVG’s structural and operational foundations for FY27 appear meaningfully stronger than they were 12 months prior.
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