Treasury Wine shares lift on Q1 sales growth, FY25 outlook
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More news: Shares in Treasury Wine Estates advanced in morning trade on the ASX after the winemaker reported double-digit net sales revenue growth in the September quarter.
Treasury Wine shares were up 4% to $12.16 by 11:15am AEDT.
E&P retail analyst Phillip Kimber noted that Treasury Wines's Q1 trading comments and reconfirmation of its full-year guidance "is pleasing", considering there had been some share price weakness leading into its annual general meeting.
Treasury Wine reiterates guidance after 'positive' start to FY25
The news: Australia’s top winemaker Treasury Wine Estates has reiterated its full-year earnings guidance after delivering double-digit net sales revenue (NSR) growth in the first quarter.
The numbers: Treasury Wine said that its luxury segment has driven the delivery of double-digit organic NSR growth across the group in the three months to September, supported in part by phasing benefits compared to the prior year. However, the company did not provide its sales figures.
The Melbourne-based winemaker reiterated its FY25 EBITS guidance of between $780 million and $810 million.
The context: Treasury Wine said momentum for its Penfolds brand remains “particularly strong” in Asia and Australia, and on track to deliver on guidance for low-double digit divisional EBITS growth this fiscal year.
The company also said it is making “good progress” in China on plans to rebuild distribution and availability of its Australian country of origin in the market, with performance in the quarter in line with its expectations.
In Treasury Americas, the implementation of enhanced distribution arrangements following the acquisition of US luxury winemaker DAOU was a "key execution focus" during the quarter. Now that stage is complete, Treasury Wine expects its luxury portfolio to strengthen for the rest of the year.
NSR was in line with the prior year across the remainder of its global portfolio, consistent with the company’s expectations.
On Monday, Treasury Wine said it will pay $65 million after agreeing to settle two class action lawsuits related to its profit downgrade in January 2020
The source: ASX announcement
