US Edition
Iconic Aussie wine takes massive $650m hit
- On Monday, Treasury Wine Estates reported a first‑half net loss of $649.4 million and suspended its interim FY26 dividend temporarily.
- Non‑cash impairments and market shifts in the Americas drove a $751 million loss, while China's market re‑entry was hampered by policy crackdowns and parallel‑import issues.
- TWE reported underlying results showing an underlying result of $236.4 million, net sales of $1.3 billion, and said `Encouragingly, we are seeing our key brands continue to perform` .
- The company immediately moved to cut shipments and slash wholesaler holdings by 400,000 cases in China and 500,000 cases in the US as TWE shares fell to a two-month low of $4.97 on Monday.
- Management is pursuing cost cuts and transformation with the TWE Ascent cost-cutting program targeting $100 million a year, while expecting second half of 2025/26 earnings to rise on Penfolds division and California momentum.
20 Articles
20 Articles
Glass Half Full: Penfolds Owner ‘Excited’ Despite Loss
A premium wine maker, whose portfolio includes the prestigious Penfolds brand, has plunged into the red after it was forced to swallow a one-off hit to its bottom line. Treasury Wine Estates on Feb. 16 reported a first-half bottom-line net loss of $649.4 million (US$460 million), against a net profit of $220.9 million in the previous corresponding period. The result reflected a post-tax loss of $751 million, due to a previously flagged impairmen…
Sydney Morning Herald
The end of the boozy Chinese banquet hits Australia’s largest winemaker
The $4 billion Treasury Wine Estates has suspended its interim dividend and cut its shipments to the US and China to regain control over supply and price.
The Courier
The Bendigo AdvertiserGlass half full: Penfolds owner 'excited' despite loss
Treasury Wine Estates has posted a bottom-line net loss, but is confident ongoing efforts to cut costs and...
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