Wine specialist Australian Vintage Ltd (ASX: AVG) said on Thursday that it has returned to profit status as consumers shifted their preference for branded wines and a sustained cost-reduction scheme earlier implemented conspired to deliver impressive results for the company.

The wine company said that it achieved a full year net profit of $9.1 million for the past 12 months leading to June 30, following its loss of $123.6 million in the previous corresponding year, which also carried red listings of up to $172.8 million in items that include impairments and funds for busted deals.

Australian Vintage chair Ian Ferrier said that the company is set to advance its 2011 full year net profit after tax in the event that the current conditions remain unchanged as chief executive Neil McGuigan maintained that the company was still reeling from structural changes seen lately in the wine industry.

Mr McGuigan admitted that bulk wine sales were not so good during the results' covered period as consumers gravitated from branded cask wine to private label cask wine but he looks forward to a much improved international sales "as we expect to further expand our sales volumes in the UK market and in the US."

As more growers departed from the industry, Australian Vintage said that industry stock were gearing towards a balance supply though the company acknowledged that the markets remained volatile prompting its board "to take a conservative position on 2011 cash requirements and no final dividend for 2010 will be issued."

As of 1414 AEST on Thursday, Australian Vintage shares were trading at 27 cents, shedding two cents of its value from previous trading day.