Demand for high quality wine has helped keep Australian Vintage’s full year profit steady despite a slump in sales of casks and bulk wine.

The owner of brands ranging from McGuigan to Passion Pop made a net profit of $7.07 million in the 2012/13 financial year, compared to $7.06 million in the previous year.

But revenue slumped 8.5 per cent because of lower sales in the UK and Europe, and weaker demand for bulk wine and casks in Australia and north America.

Australian Vintage said that revenue fall would have been worse if not for steady sales of its higher value wines.

The company has also achieved cost reductions on the leases for its vineyards.

Australian Vintage had performed well despite a smaller crop in 2012 and uncertain economic conditions, chief executive Neil McGuigan said.

Profit is forecast to grow by at least $2.4 million in the current financial year, due to a larger and higher quality vintage in 2013, plus the benefit of a falling Australian dollar.

“The improved trading conditions we are beginning to see are encouraging for Australian Vintage,” chairman Ian Ferrier said.

“We have turned the corner away from the corrective action that needed to be taken in the past and we see positives as the industry cycle swings and supply and demand move further into balance.”

Australian Vintage shares were up two cents, or 4.3 per cent, at 49 cents at 1402 AEST.