Treasury Wine Estates (TWE), the owner of Penfolds, has suffered heavy losses in the first-half of the 2026 financial year, with the group signalling its commitment to a long-term transformation.
A loss of $649.6 million in just six months for the whole group consisted of a decline in all of TWE’s markets, albeit . Even Penfolds, its flagship luxury wine, saw a 19.6 per cent decrease in earnings.
“Today’s results come at a time when we are already making meaningful progress with the decisive actions required to return TWE to a path of sustainable, profitable growth,” Sam Fischer, CEO of TWE, said.
The company suffered a 63.6 per cent decline in earnings in the Americas, in what it called a “softer wine market”, with the heavy losses influenced by a $770.5 million impairment in the Americas of its 19 Crimes brand.
Excluding impairments, the group achieved a profit of $236.4 million, about 40 per cent less than the previous comparable period.
“Our focus is firmly on the future to strengthen execution and ensure we build a stronger, more resilient business for the long term,” Fischer added.
Continuing with its two- to three-year transformation plan, TWE Ascent, the group will evaluate its portfolio and aim to achieve $100 million per year in operational cost improvements.
“TWE Ascent is the key enabler of this reset. It is a disciplined, multi-year transformation program designed to sharpen our portfolio, simplify the organisation and optimise our cost base, and I am pleased with the progress we have made to date,” Fischer said.
“Encouragingly, we are seeing our key brands continue to perform in the marketplace and resonate strongly with consumers, reinforcing confidence in the strength of our portfolio and our ability to deliver improved performance as we execute the transformation of the business.”
