Treasury Wines Australia reported a 13 per cent increase in sales revenue to $2.7 billion, while its net profit after tax took a heavy 61 per cent drop to $99 million due to the sizeable impairment of its Commercial portfolio it announced earlier this month,
Snapshot
- Net sales revenue (NSR): $2.7b, up 13% on prior corresponding period (pcp);
- NSR per case: $125m, up 14.2% pcp;
- Earnings before interest, tax, SGARA, and material items (EBITS): $658m, up 12.8%;
- Net profit after tax (NPAT): $99m, down 61% pcp; and
- Net profit after tax before material items and SGARA: $407.5, up 8.3%.
TWE CEO, Tim Ford, said strong performance in its Luxury portfolio – growth in Penfolds and Treasury Americas, and the 2H24 contribution from DAOU Vineyards – and “outstanding execution” were key contributors.
TWE’s 13.1% revenue increase to $2.7 billion came largely from growth in Penfolds and Treasury Americas, with DAOU Vineyards coming online in 2H24. The solid NSR per case increase was due to the ongoing premiumisation of TWE’s portfolio, which now represents about 50 per cent of the company’s NSR.
Luxury NSR increased 29.6 per cent pcp, with consumer demand for luxury wines remaining strong in key markets.
Top-line growth for Penfolds was $1 billion NSR, up 22 per cent pcp, NSR per case $332 million, down 6.2 per cent, and EBITS $421 million, up 15.5 per cent.
Treasury Americas recorded $1 billion NSR, up 22 per cent, NSR per case $167 million, up 11 per cent, and EBITS $230.5 million, up 13 per cent.
Treasury Premium Brands recorded $737 million NSR, $57 million NSW per case, and $76 million EBITS.
The Luxury portfolio of Penfolds and Treasury Americas accounts for 58 per cent of group NSR and 79 per cent of group EBITS.
Penfolds NSR
- ANZ: $255m, up 8.5% pcp;
- Asia: $629.6m, up 34.7%;
- Americas: $48.2, down 6.4%; and
- EMEA: $67m, up 3%.
DAOU’s 2H24 EBITS was US$24.7 million, which was in line with TWE’s guidance.
The re-establishment of Penfolds Australian COO portfolio in China is on track, with strong shipment demand and initial depletions in line with expectations, he said.
Ford announced the company would create a Global Premium division by FY25, combining Treasury Premium Brands and Treasury Americas Premium portfolio while seeking to divest the Commercial brand portfolio.
The company expects FY25 to be in the range of $780-810 million.
