Following last week's announcement of its intention to divest its entry-level brands such as Wolf Blass, Yellowglen, and Lindeman’s, Treasury Wine Estates (TWE), the publicly traded Australian wine company, has reported a 12.8% increase in pre-tax profit (EBIT) for the 2023/2024 fiscal year (July 1, 2023, to June 30, 2024), reaching AU$ 658.1m (circa US$437m/€396m). The company stated in its annual report that, excluding the acquisition of the Californian winery Daou Vineyards, profit grew by 6.4%. Driven by strong demand for luxury wines, the revenue growth in this segment was particularly impressive, with an increase of 29.6% (organic growth excluding acquisitions: 14.5 %).
Group-wide, revenue rose by 13.1% to AU$ 2.74bn (circa US$1.82bn/€1.65bn). The reintroduction of the Penfolds entry-level portfolio in China, following the removal of import tariffs, also had a positive impact, according to the company. TWE announced plans to consolidate its Treasury Premium Brands and Treasury Americas Premium divisions into a global premium portfolio by July 1, 2025, and reiterated its intention to sell its retail brands.
Up to 23% growth expected with luxury segment
Strengthened by its new luxury strategy, TWE anticipates a profit increase of between 18.5% and 23% for the 2025 fiscal year, reaching AU$ 780m to 810m (circa US$518m–537m/€470–487m). This reflects the robust growth of the luxury portfolios from Penfolds and Treasury Americas, while the rest of TWE's global brand portfolio is expected to remain stable.
However, after taxes, TWE reported a net loss of AU$ 318.1m (circa US$211m/€191m) for the past fiscal year. According to the company, this was due to an impairment of Treasury Premium Brands and transaction and integration costs associated with the acquisition of Daou.
The Penfolds brand managed to increase its pre-tax profit by 15.5% to AU$ 421.3m (circa US$279/€254m). Growth was driven not only by China but also by other Asian markets such as Hong Kong, Thailand, and Taiwan.
Drastic decline in consumer brands
Treasury Americas (e.g., Stags’ Leap, Frank Family Vineyards) increased its pre-tax profit by 13.1% to AU$ 230.5m (circa US$153/EUR 139m). In contrast, Treasury Premium Brands reported a 7% decline in pre-tax profit to AU$76m (circa US$50m/€5.7m). This decline was primarily due to the globally weakening demand for wines in the commercial segment, particularly in Australia and the United Kingdom. KA
