Australia’s biggest wine producer has posted mixed full-year results, with a significant 60 per cent slump in profit to $98.8 million due to non-cash impairment charges flagged earlier this month.
But Treasury Wine Estates — behind brands including Penfolds, Squealing Pig and Pepperjack — on Thursday revealed earnings before interest and tax lifted 12.8 per cent to $658.1m.
That was driven by strong luxury portfolio growth in Penfolds and Treasury Americas, as well as contributions from the recently acquired Californian wine operation DAOU Vineyards.
DAOU delivered second-half earnings of $US24.7m, in line with guidance, with business integration under way and on track to deliver synergies of $US20m-plus by the end of the 2026 financial year.
“Our fiscal 2024 performance reflects the excellent momentum we continue to build behind our Luxury brand portfolios in Penfolds and Treasury Americas,” Treasury chief executive Tim Ford said.
“These two outstanding Luxury wine platforms have very clear strategic direction and execution priorities, and we have great confidence in both as strong drivers of long-term growth for Treasury Wine Estates.”
Earnings at the high-end Penfolds brand lifted 15.5 per cent to $421.3m, while Treasury Americas grew 13.1 per cent $230.5m.
Treasury Premium Brands — which encompasses the Snoop Dogg-backed 19 Crimes — reported a 7 per cent decline in earnings to $76m.
“In relation to our Premium brands, we are focused on improving the performance of this global portfolio to deliver greater value to TWE overall, with implementing key changes to enable the evolution to the new Global Premium division a key focus through F25,” Mr Ford said.