Treasury Wine Estates CEO Tim Ford says after two years of significant change, the company has momentum to grow earnings and navigate future uncertainty.
TWE FY22 results showed a 3.6 per cent decline in net sales revenue due to a drop in global Commercial portfolio volumes and the virtual closure of access to the mainland China market.
An uptick in NSR per case of 16.1 per cent was driven by the company’s focus on premiumisation, with the Premium and Luxury portfolios contributing 83 per cent to NSR, up from 77 per cent in FY21
Snapshot:
- Net Sales Revenue (NSR): down 3.6% to $2,476m;
- NSR per case: up 16.1% to $97.3m;
- Earnings Before Interest, Tax, SGARA and Material items (EBITS): up 2.6% to $523.7m; and
- Net Profit After Tax (NPAT): up 5.3% to $263.2m.
While Penfolds reported an eight per cent decline in EBITS to $319.3 million, excluding mainland China, EBITS increased by 45 per cent. In Asian markets outside of mainland China, NSR grew 106 per cent.
Treasury Americas reported a 21 per cent increase in EBITS to $185.6 million, with strong performances from Beringer, Stags’ Leap, Matua and 19 Crimes.
Treasury Premium Brands reported a 27 per cent EBITS increase to $79.6 million, again, driven by priority brands 19 Crimes, Pepperjack, Squealing Pig and Wynns.
The company has committed $20 million for solar panel and meter technology across its global network, with the goal of achieving 100 per cent renewable energy by FY24.
Female representation has increased to 41.5 per cent, up 1.3 per cent, but a small drop of 0.2 per cent in leadership roles to 44.9 per cent.
Ford said, “We have returned to delivering margin accretive earnings growth in a year where we managed through the effective closure of the mainland China market, materially reshaped our Treasury Americas division and navigated a global macroeconomic backdrop that included the global pandemic, significant supply chain disruptions, and inflationary cost pressures.”
