Treasury Wine Estates has announced an interim net loss of $649.4 million as it battles tough trading conditions in major export markets including China and the United States.
Revenue dropped almost 17 percent to $1.3 billion.
Sales of the TWE star brand Penfolds dropped 10.5 percent to $501.3 million in the six months to December 31.
TWE has suspended the payment of its F26 interim dividend, a “temporary measure to prioritise the preservation of capital and reduce leverage”.
New TWE CEO Sam Fischer said, “Today’s results come at a time when we are already making meaningful progress with the decisive actions required to return TWE to a path of sustainable, profitable growth.
“Our focus is firmly on the future to strengthen execution and ensure we build a stronger, more resilient business for the long term.
“TWE Ascent is the key enabler of this reset.
“It is a disciplined, multi-year transformation program designed to sharpen our portfolio, simplify the organisation and optimise our cost base, and I am pleased with the progress we have made to date.
“Encouragingly, we are seeing our key brands continue to perform in the marketplace and resonate strongly with consumers, reinforcing confidence in the strength of our portfolio and our ability to deliver improved performance as we execute the transformation of the business.”
The Australian reported that it is the largest interim loss for TWE since it demerged from Foster’s in 2011.
TWE Summary
“1H26 performance and full year expectations reflect the impact of challenging market conditions and strategic measures to maintain brand strength and ensure healthy sales channels.”
“Underlying performance of key brands remains positive, as reflected in depletions growth.”
“2H26 EBITS expected to be higher than 1H26, driven by improved momentum in California following completion of distribution transition.”
“Our immediate agenda is focused on three key priorities – market execution, cash focus and accelerating the TWE Ascent program of work, with high confidence around expected future benefits.”
“We remain confident in our future, with strong business foundations – including a powerful portfolio of brands with leading market positions – underpinning our confidence in returning to the delivery of sustainable, profitable growth.”
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