Treasury Wine Estates announces earnings boost and share buyback plan

Treasury Wine Estates has forecast a strong year ahead, with earnings expected to rise by 17% and a share buyback of up to 5% planned to boost investor returns. The group also unveiled a major restructuring, including the launch of a new division housing its lower-priced wine brands.

Treasury Wine Estates has reassured investors that next year will bring further improvement and plans to repurchase up to 5% of its shares to enhance their value.

In an investor update, the company, which reports its 2025 financial results in mid-August, confirmed that it expected its earnings to be about AU$770m, which would be a 17% increase on the 2024 level.

Penfolds to drive growth in Asia

The flagship Penfolds range is expected to deliver low double-digit earnings growth thanks to a strong performance in Asia, particularly following the re-establishment of the Australian country of origin portfolio in China.

It said that for the 2026 financial year beginning next month, it predicts low to mid double-digit earnings growth, “reflecting the decision to increase sales and marketing overhead investment in Asian markets”.

Treasury Americas continues steady progress

Treasury Americas will deliver solid earnings growth this year, with the Daou Vineyards luxury arm generating low double-digit net sales revenue growth, in line with medium-term targets.

It said that Treasury Americas’ Luxury sales would continue to grow next year, but tempered expectations by referring to the “economic uncertainty and weaker consumer demand” in the US, where the below US$15 per bottle segment of the market is under extreme pressure.

New division to house value brands

Treasury also unveiled Treasury Collective, a new reporting unit containing the group’s lower-priced wine brands such as 19 Crimes, Cali by Snoop, Matua and Squealing Pig, Blossom Hill, Lindeman’s, Wolf Blass and Yellowglen.

Treasury had earlier this year tried to sell off some of these “commercial” brands but CEO Tim Ford, who will step down at the end of September, decided to retain them because the “offers received for these brands did not represent compelling value and therefore their retention is the best course of action”.

Business unit split and market response

From next month, the sales split between units will be roughly 36% from Penfolds, 36% from Treasury Americas and 38% from the new Treasury Collective arm.

The company will announce full details of the share buyback programme in August. It believes they are substantially undervalued and that this is the best way to unlock returns to investors.

Following the update to investors, the shares rose by 6% overnight in Sydney.

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