Treasury Wine reports strong half-year profit

28th February, 2013 by Andy Young

Treasury Wine Estates (TWE) has reported a net profit of AU$52.3 million (£35.3m) for the first six months of its financial year, to December 2012.

Treasury Wine EstatesThe result is a 30.8% improvement on the same period for the previous year and exceeds the group’s forecasted profit of $47m. Shares in TWE surged as a result of the announcement.

Earnings before interest and tax (EBITS) dropped by 20% to $73m as a result of the strong Australian dollar and an increase in the cost of goods sold (COGS).

TWE’s chief executive David Dearie said: “I am pleased to report that first half EBITS of $73.4 million is in line with guidance provided at the Annual General Meeting in 2012.

“This result was impacted by a significant COGS increase, up $2.24 per case, principally driven by the weather affected 2011 vintage, and a challenging retail landscape.

“However, we continue to invest for growth and during the first half we purchased 591 hectares of premium vineyards in South Australia and the Napa Valley, we also acquired the remaining 50% of what is now the Matua Marlborough winery and we increased our USA non-current inventory by 50%.

“These investments ensure TWE is well positioned to better satisfy the growing consumer demand for our luxury and masstige wines in existing and new markets.”

Dearie went on to say that the group will continue to focus on premium wines and that there are positive early indications for the 2013 Australian vintage.

He added: “The global wine industry outlook remains positive as consumers continue to seek out more premium wine, and TWE will continue to invest for future growth by ensuring that we have the brands and quality wines to meet this increasing demand.

“Overall the wine industry is edging ever closer to supply and demand balance with the poor 2012 vintage in Europe further reducing global supply. Early signs of the 2013 Australian vintage appear generally favourable with growing conditions characterised by low rainfall in winter and the growing season to date.”

Leave a Reply

Your email address will not be published. Required fields are marked *

Subscribe to our newsletters

Job vacancies

Beer Development Specialist

Matthew Clark
London, UK

Fine Wine Sales Administrator

Davy's Wine Merchants
London, UK

Business Development Manager - On Trade

FINE+RARE
Central London, GB

Regional Sales Manager

Swallow Associates Ltd
Home Based: North-West England, UK

London Account Manager Role (Full Time)

LITTLE BIRD GIN
Home based with UK travel. , GB

Sales Operations Manager

Bibendum PLB
London, UK

Digital Marketing Executive (online content & community manager)

Corney & Barrow Limited
London E1W (near Tower Bridge), UK

Store Manager – Premium Drinks

Amathus Drinks PLC
London, UK

On-Trade Regional Sales Manager

Anthony Byrne Fine Wines
London and the South East, UK

Wine Sales – Northwest England

Gerrard Seel
North West England

Senior On-Trade Sales Manager – English Sparkling Wine Company

COREcruitment
London based with national travel, UK

National Account Manager – RTM – On Trade

COREcruitment
Home based with frequent UK travel

The Global Sparkling Masters 2017

Deadline : 14th June 2017

The Global Syrah Masters 2017

Deadline : 14th June 2017

The Global Malbec Masters 2017

Deadline : 14th June 2017

The Global Beer Masters 2017

Deadline : 1st August 2017

Click to view more

The Drinks Business Awards 2017

Now in its 15th year, the db awards have become the most authoritative, internationally respected badge of achievement in the alcoholic drinks industry.

The Asian Cabernet Sauvignon Masters 2017

the drinks business Hong Kong announces its first year of The Asian Cabernet Sauvignon Masters.

Rioja Masters 2016

Now in its fifth year, the competition will recognise and reward the finest Riojas on the world stage.

Fortified Masters 2016

Now in its third year, The Fortified Masters will reward the best fortified wines on offer.

Click to view more