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Treasury Wine full-year profit jumps

James Hall  |  16 Aug 2018Text size  Decrease  Increase  |  
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SYDNEY - [AAP] Treasury Wine Estates (ASX: TWE) has posted a 34 per cent jump in full-year net profit,s led by surging demand in Asia.

Net profit for the year to June 30 rose to $360.3 million, from $269.1 million a year earlier, as the company boosted margins by focusing on higher end products and cost control.

Revenue was down 1.5 per cent at $2.5 billion.

The world's biggest listed winemaker, which owns premium wine Penfolds as well as major labels Wolf Blass and Lindeman's, has been shifting its focus to "portfolio premiumisation".

Treasury Wine's Net sales revenue per case rose 7.1 per cent.

The company said margins rose 2 percentage points in the Americas, 3.1 percentage points in Europe and 3.9 percentage points in Australia and New Zealand, driven by sales in higher-end Masstige brand products.

Earnings growth in Asia was up 37 per cent to $205.2 million, helped by a broadened brand portfolio and higher volumes.

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Chief executive Michael Clarke said the shift in focus towards exporting premium wine will equate to a profitable outlook from 2018-2019.

"We have the wine, the brands, the business models and the organisational talent to propel our company into its next phase of growth," he said.

The company reaffirmed full-year guidance of 25 per cent growth in earnings before interest tax and selling and general expenses, and said it is still targeting an EBITS margin of 25 per cent.

Treasury Wine said it will pay a fully-franked final dividend of 17 cents a share, up from 13 cents a year earlier.

TREASURY WINE TOASTS TO PREMIUM WINE
* Full-year profit up 34 per cent to $360.3 million
* Revenue down 1.5 per cent at $2.5 billion

 

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© 2021 Australian Associated Press Pty Limited (AAP) or its Licensors. This is the Morningstar service with content provided by AAP where indicated. AAP reserves all rights, including copyright, in services provided by it. The information in the service is for personal use only, does not constitute financial product advice (whether general or personal) and may not be re-written, copied, re-sold or re-distributed, framed, linked or otherwise used whether for compensation of any kind or not, without the prior written permission of AAP. You should seek advice from a professional financial adviser before making decision to acquire or dispose of a financial product.

This service is published for general information purposes only without assuming a duty of care. AAP is not in the business of providing financial product advice (whether personal or general advice), and gives no warranty, guarantee or other representation about the accuracy of the information or images contained in this service. AAP is not liable for errors, omissions in, delays or interruptions to or cessation of the services through negligence or otherwise. The globe symbol and "AAP" are registered trademarks.

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