Treasury Wine shares gain after FY25 profit jump
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The news: Shares in Treasury Wine Estates climbed this morning after the winemaker posted a surge in full-year profit.
Treasury Wine shares were up 2.7% to $7.84 at 11:00am AEST, having retreated more than 30% since the turn of the year.
RBC Capital Markets analyst Michael Toner said group earnings were in line with consensus forecasts while net sales revenue in the Americas missed RBC's expectations, driven by softness in premium and commercial sales.
Toner said a "key question" from the result is whether changing consumption patterns in China will persist for the remainder of the 2026 financial year.
Treasury Wine said this morning that it has observed a shift in alcohol consumption behaviour in China since June, as preferences and occasions shifted from large scale banqueting to smaller scale business and lifestyle-oriented occasions.
Treasury Wine Estates profit surges 342% on booming Penfolds sales in China
The news: Australia's top winemaker Treasury Wine Estates has reported a 342% jump in full-year net profit after tax to $436.9 million, driven by strong growth in Penfolds sales in China and other Asian markets.
This is up from last year's result of $98.9 million but below consensus forecasts of $460.58 million, according to Visible Alpha data.
The company also announced an on-market share buyback of up to $200 million, to be completed progressively through the 2026 financial year.
The numbers: Treasury Wine declared a final dividend of 20 cents per share. Analysts had expected it to match last year's payout of 19 cents.
Net sales revenue grew 7.2% year on year to $2.94 billion, while earnings (EBITS) rose 17% to $770.3 million.
Penfolds EBITS was up 13.2% year on year to $477 million, driven by Australian country of origin shipments to China. Treasury Americas reported a 33.9% increase in EBITS to $308.6 million, driven by revenue growth in its luxury portfolio.
The context: The group said that despite headwinds in a number of markets, it expects to deliver further EBITS growth in the 2026 fiscal year. It has guided "low to mid double-digit" EBITS growth for Penfolds, driven by continued positive momentum through several Asian markets.
Treasury Wine said the net financial impact of its change of distributor in California "remains uncertain". It currently anticipates an adverse impact to net sales revenue of around $50 million.
The sources: ASX, RBC Capital Markets research
