Treasury Wine Estates has reported a statutory net loss of $1,078.7 million for FY26, with $1.31 billion in post-tax material items from its US write-downs drowning out an operating result that landed ahead of guidance.
Earnings before interest, tax, SGARA and material items (EBITS) came in at $492.3 million, down 36.1 per cent, but above the $480-490 million range set at the company’s 4 June investor day. Net sales revenue fell 12.8 per cent to $2,561 million and volume dropped 9.9 per cent to 19.2 million nine-litre equivalent cases, with shipments cut back across every division.
The $1,308.7 million post-tax material items charge covers $866.3 million in non-cash impairment of US brands, goodwill and inventory, and $478.9 million in TWE Ascent transformation costs, of which $458.6 million relates to the decision to reduce US vintage makes from 2026.
Partly offsetting that were net settlement proceeds of $19.6 million post-tax from US distributor RNDC. TWE flagged the $558.4 million second-half component of the write-down on 10 August, on top of the $687 million booked against the US business in December 2025.
FY26 snapshot
|
Metric |
FY26 |
Change on FY25 |
|
Net sales revenue |
$2,561.0m |
down 12.8% |
|
Volume |
19.2m nine-litre cases |
down 9.9% |
|
EBITS |
$492.3m |
down 36.1% |
|
EBITS margin |
19.2% |
down 7.0 ppts |
|
NPAT before material items and SGARA |
$275.3m |
down 41.5% |
|
Statutory NPAT |
loss of $1,078.7m |
from $436.8m profit |
|
EPS before material items and SGARA |
34.1 cents |
down 41.3% |
|
Dividend |
nil |
from 40.0 cents |
|
Closing net debt |
$1,782.4m |
up from $1,778.9m |
|
Capital expenditure |
$113.4m |
down from $137.1m |
|
Cash conversion |
81.4% |
down from 87.4% |
Supply chain rebuild underway
The company said changes were already underway in its global supply chain, with TWE’s Barossa packaging centre being converted from a commercial-oriented pure-play packaging plant into an integrated filling, gift packaging and maturation storage facility that will be designed around Penfolds and other luxury brands.
TWE has also completed the sale of its San Luis Obispo winery in California and said it has processes underway to divest further non-priority brands and assets.
The organisational structure for the new regional operating model is being finalised ahead of transition on 1 October. TWE said the $100 million a year cost reduction target flagged under TWE Ascent remained on track to be fully realised by FY29, with about $40 million of that expected in FY27. Capital expenditure will fall to approximately $75 million in FY27 from $113.4 million, as the company prioritises cash preservation to support deleveraging.
Penfolds carries the result
Penfolds EBITS fell 15.2 per cent to $404.3 million on a 40.5 per cent margin, with net sales revenue down seven per cent to $998.3 million. Depletions grew across key markets, up 34.7 per cent in China, 18.1 per cent in Asia ex-China and 5.7 per cent in Australia, although TWE said action to divert parallel imports into authorised channels accounted for roughly half the China growth rate. China customer inventory cover was cut by about 0.2 million cases, half the targeted 0.4 million case reduction, with the balance to come in FY27.
Treasury Americas EBITS dropped 61.4 per cent to $90.2 million and the margin fell 16.3 percentage points to 15.7 per cent. Cost of goods sold per case rose 12.2 per cent because inventory repurchased from RNDC in California is being resold at nil gross margin, with about 40 per cent of it moved in the second half and the remainder to clear in FY27. Depletions still grew 4.2 per cent, led by DAOU at 5.0 per cent and Frank Family Vineyards at 5.1 per cent.
Treasury Collective EBITS fell 47.8 per cent to $68.0 million on a 6.9 per cent margin, with declines led by the Americas on softer premium demand and further falls for 19 Crimes. Matua depletions grew 6.7 per cent in the US. Commercial depletions were down 20.2 per cent globally.
Vintage costs bite
A SGARA loss of $60.4 million, up from $26.6 million, reflected the 2025 Californian vintage, where late harvest weather hit yields, and the 2026 Australian vintage, where lower market pricing and a challenging season pushed production costs above the average market price attributable to the vintage.
TWE described the 2026 Australian vintage as high quality despite the lower yields, highlighting Shiraz from Barossa Valley and McLaren Vale and Cabernet Sauvignon from Limestone Coast. It said its Australian inventory position is now in balance. The 2026 New Zealand vintage was strong. The company’s Barossa footprint also takes in the $15 million dealcoholisation facility opened earlier this year.
FY27 outlook
TWE expects FY27 EBITS to be at least equivalent to FY26, with about 55 per cent weighted to the second half as US inventory rebalancing and the nil-margin RNDC sell-through work through the first half and Bin 407 shipments phase into China. Under the new four-region structure, Greater China is guided to $280-310 million, Emerging Markets to $95-115 million, ANZ and Europe to $100-120 million, and the Americas to approximately $50 million.
The strategic and operational review of the Americas business continues, with advisers appointed to examine the brand portfolio, operating model and asset base.
Treasury Wine Estates CEO, Sam Fischer, said FY26 was “a year of decisive action and significant change” for the company, and that financial performance reflected evolving market conditions and deliberate steps to protect brand and channel health. He said Penfolds had again proved it is a brand that “transcends the wine category”, and that supply chain work is being aligned to a simpler business.
