Treasury Wine Estates CEO Tim Ford says FY21 saw significant changes and achievement for the business, despite major external disruptions.
Snapshot
- F21 earnings before interest, tax, SGARA and material items (EBITS) up 3% to $510.3m;
- net profit after tax (NPAT) up 6.4% to $309.6m;
- net sales revenue (NSR) up 1.3% to $2.569m ;
- earnings per share (EPS) up 6% to 42.9 cents per share;
- cost of goods sold (COGS) up 10.6%; and
- new company structure operational from 1 July, 2021.
Overall, TWE's annual result reported EBITS of $510.3 million, NPAT up 2 per cent to $250 million and EPS up 2 per cent to 34.7 cents per share.
On an organic basis, EBITS increased 3 per cent, reflecting top-line growth driven by the $10-30 premium portfolio including 19 Crimes, Pepperjack, Squealing Pig, Beringer Brothers and Matua.
Luxury and premium portfolios have been major drivers for Treasury Wine Estates in FY21, accounting for 77 per cent of global net service revenue (NSR), up from 71 per cent in FY20
The major overhaul of its Americas business asset base, strategy and team was starting to pay dividends, with 54 per cent constant currency EBITS growth, Ford said.
Its Asia business reported a 15 per cent decline in EBITS to $205.4m, with mainland China EBITS down $77.3m due to the implementation of import duties.
Those loses were partially offset due to growth in other parts of the region despite ongoing pandemic restrictions to key luxury sales channels.
The Americas reported a 23 per cent increase in EBITS to $168.3 million, with positive momentum in its retail and ecommerce channels, led by 19 Crimes.
And the ANZ region was up 10 per cent to $142.7 million, reflecting ongoing portfolio premiumisation.
TWE transitioned to its new brand-led divisions operating model on 1 July – Penfolds, Treasury Premium Brands and Treasury Americas.
