• Treasury Wine Estates CEO Tim Ford.
    Treasury Wine Estates CEO Tim Ford.
  • In 1998-99, vines from Magill Estate and Kalimna Heritage Selection were planted at Penfolds’ newly purchased Camatta Hills Estate, Paso Robles in California. Grapes from these vines are a major part of the inaugural 2018 California Collection.
    In 1998-99, vines from Magill Estate and Kalimna Heritage Selection were planted at Penfolds’ newly purchased Camatta Hills Estate, Paso Robles in California. Grapes from these vines are a major part of the inaugural 2018 California Collection.
  • Penfolds chief winemaker Peter Gago said the release is led by the 2018 Quantum, priced on par with its Grange at $950. “This blend assembles parcels of prized cabernet sauvignon from some of the Napa Valley’s best vineyards and pedigreed shiraz from South Australia. This is a first for Penfolds,” he said.
    Penfolds chief winemaker Peter Gago said the release is led by the 2018 Quantum, priced on par with its Grange at $950. “This blend assembles parcels of prized cabernet sauvignon from some of the Napa Valley’s best vineyards and pedigreed shiraz from South Australia. This is a first for Penfolds,” he said.
  • In 1998-99, vines from Magill Estate and Kalimna Heritage Selection were planted at Penfolds’ newly purchased Camatta Hills Estate, Paso Robles in California. Grapes from these vines are a major part of the inaugural California Collection.
    In 1998-99, vines from Magill Estate and Kalimna Heritage Selection were planted at Penfolds’ newly purchased Camatta Hills Estate, Paso Robles in California. Grapes from these vines are a major part of the inaugural California Collection.
Close×

Treasury Wine Estates has recorded a net profit after tax (NPAT) drop of 43 per cent to $120.9 million and cut its first half dividend from 20 cents to 15 cents per share.

Ongoing impacts from COVID-19 continued to disrupt sales channels, particularly for higher margin luxury wines. But it was reduced shipments to China due to anti-dumping and countervailing investigations by the Chinese Ministry of Commerce that hit hard.

TWE profits in its Asia division fell 28 per cent to $127.2 million. CEO Tim Ford said it expects demand to remain extremely limited while the provisional measures are in place.

Ford said it had been a time of "significant disruption" but the company was well placed for recovery in key luxury wine channels once conditions improve.  

All channels experienced decline: Americas, 15 per cent; Australia/New Zealand: 12 per cent; and EMEA: 22 per cent. The Americas have been affected by COVID-19 restrictions and Californian fires. ANZ reflected the ongoing impact of restrictions, while EMEA was impacted by higher cost of goods sold (COGS) and cost of doing business (CODBs), included Brexit-related costs.

Ford also announced the proposed de-merger of Penfolds was on hold. Instead, there would be an operational restructure across brand portfolios rather than regions. From FY22, TWE will have three divisions: Penfolds; Treasury Premium Brands; and Treasury Americas.

While each would have unique characteristics, all will be serviced by centralised business, supply and corporate functions.

The company is still offloading a significant portion of its US commercial brand portfolio and reviewing other non-priority brands, operating assets and leases. It expects around $300 million from the divestments.

Retail and ecommerce channels continued to perform at elevated levels across all markets, TWE said, reflecting the COVID-19 driven shift to in-home consumption.

Packaging News

Australia’s first industry insight reports for the Save Food Packaging Design project as part of the Fight Food Waste CRC have been released by the Australian Institute of Packaging, in partnership with RMIT.

Orora achieved increased underlying earnings before interest and tax in all its businesses in the first half, on sales that rose 3 per cent in constant currency terms, with Australasia the best performer.

Profits at Pact Group rose strongly, on sales that were up a smidgeon, in its first half results, with the company attributing the rise to solid organic growth and higher margins.