Treasury Wine Estates downgrades full-year earnings forecast
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The news: Australia's top winemaker Treasury Wine Estates has downgraded its full-year earnings guidance due to lower-than-expected premium shipments in the US.
The numbers: Treasury Wine said it now expects FY25 earnings before interest and taxes to be around $770 million, having previously guided "approximately $780 million".
The company said the US impact was driven by economic uncertainty and weaker consumer demand impacting price points below USD15 ($23).
The context: Treasury Wine also confirmed that one of its US distributors, Republic National Distributing Company (RNDC), will cease operating in California from 2 September.
In the first half of the year, RNDC California accounted for around 25% of Treasury Americas' net sales revenue and approximately 10% of the groups net sales revenue. However, Treasury Wine said its closure is not expected to impact the group's full-year results.
What they said: "[Treasury Wine's] relationship with RNDC spans 25 US states, including California," the company said in a statement. "The closure of RNDC's California operations is not expected to impact the remainder of its business, and RNDC has reiterated its commitment to investing behind and driving [Treasury Wine's] portfolio in the remaining 24 states."
The source: ASX
