Yellow Tail owner Casella Wines' profit slumps more than 50%

The news: Casella Wines, the company behind the Yellow Tail label, has seen a significant drop in profit on the back of exchange rate volatility, The Australian reported.

The numbers: Accounts lodged with ASIC show Casella's total sales fell from $500.53 million in FY21 to $461.16 million in FY22, while net profit dived 56% to $25.38 million. The family-owned business booked a loss of $24.49 million on foreign exchange movements for 2022 compared to a $31.1 million profit in 2021.

The context: For a time, Yellow Tail was the most imported wine to the US, which accounts for almost half its sales. In FY22, sales in Australia stabilised but exports to the US and the UK fell.