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Treasury Wine lifts H1 profit to $187.2m

AAP  |  31 Jan 2018Text size  Decrease  Increase  |  
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SYDNEY - [AAP] Treasury Wine Estates (ASX: TWE) has lifted first-half profit 37.4 per cent to $187.2 million and is targeting "accelerated growth" for the next two years and beyond.

Revenue for the six months to December 31 was slightly lower but earnings soared 24.9 per cent as TWE completed the integration of its Diageo acquisitions and cut supply chain costs, allowing it to lift its interim dividend by two cents to 15 cents.

Chief executive Michael Clarke on Wednesday said Treasury had signed deals to overhaul its distribution and sales in the US--mirroring its approach elsewhere--which would increase efficiency and drive portfolio growth.

"I am very excited about the outlook for the company, and I am confident that the business model changes we are making this year, along with an increased availability of high-end wine, will set TWE up for accelerated growth in FY19, FY20 and beyond," Mr Clarke said.

Earnings growth of 25 per cent is expected in 2019.

Treasury Wine has cut its exposure to the lower margin commercial wine market, which is declining in the US and UK, and is increasing its focus on higher end products.

Shares in Treasury Wine were priced at $17.00 before the market open on Wednesday, up 16 per cent in the past two weeks.

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TREASURY HEADING HIGHER

* Net profit up 37.4pc to $187.2m

* Revenue down 2.3pc to $1.336.6bn

* Interim dividend up 2.0 cents to 15.0 cents, 75 per cent franked

 

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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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