Treasury Wine Estates (TWE) booked lower net profit despite higher revenue in the last fiscal year – mainly due to writedowns.
The company’s net profit fell 61.1 per cent to $98.9 million, reflecting post-tax material items loss of $318.1 million, primarily related to non-cash impairment of goodwill and commercial brands within Treasury’ Premium Brands’s portfolio.
The company’s net sales grew 13.1 per cent to $2.74 billion, while earnings before interest, tax, and material items (EBITS) rose 12.8 per cent to $658.1 million.
Penfolds’ EBITS surged 15.5 per cent to $421.3 million, driven by strong top-line growth across all portfolio tiers and price points.
The company noted that momentum accelerated in Hong Kong, Thailand, and Taiwan, on top of the resumption of shipments to Mainland China in the fiscal fourth quarter following the government’s removal of tariffs.
The Treasury Americas business saw EBITS climb 13.1 per cent to $230.5 million, driven by the contribution of recently acquired Daou in the fiscal second half and 14.1 per cent net sales revenue growth across its other luxury portfolio brands supported by increased wine availability for Stags’ Leap and Frank Family Vineyards.
However, Treasury Premium Brands dipped 7 per cent to $76 million, attributed to reduced premium and commercial portfolio shipments reflecting weak consumption trends and underperformance in Australia and the UK through the fiscal second half.
“In relation to our premium brands, we are focused on improving the performance of this global portfolio to deliver greater value to TWE overall, with implementing key changes to enable the evolution to the new Global Premium division, a key focus through FY25,” said Tim Ford, CEO of TWE.
For this fiscal year, TWE forecasts EBITS to range from $780 million to $810 million.
