Treasury Wine Estates to sell US non-core commercial portfolio
Treasury Wine Estates (TWE) will be selling its US non-core commercial brand portfolio.
The portfolio consists of twelve brands which have not been revealed. There is no known purchaser/s at this stage but TWE says the brands will be sold for book value. The sale will include approximately one million cases of the non-core commercial wine.
“Over the past two years, TWE has been taking deliberate action to manage-down this portfolio of brands,” TWE said in a statement to the Australian Securities Exchange (ASX).
TWE said that the divestment will not impact its 2016 financial earnings or any future earnings. The company stated the revenue which the wines have been bringing in will be covered by cost of goods sold savings from its supply chain optimisation initiative and continued strong earnings growth from TWE’s international Luxury and Masstige portfolios.
TWE announces expected 2016 financial year earnings
TWE also announced earlier this week that it expects its earnings before interest, tax and self-generating and regenerating assets (EBITS) will be between AUD $330 million and AUD $340 million.
“TWE notes recent international events relating to the United Kingdom’s referendum decision to exit the European Union and the resulting depreciation of the Great British Pound,” TWE’s ASX statement said.
“TWE’s European region represents less than 10 per cent of TWE’s EBITS and the Company maintains an active hedging strategy on the majority of its Commercial wine exports to the United Kingdom. Therefore, after adjusting for updated foreign currency movements, TWE does not expect any material change to its F17 earnings expectations.”
About Treasury Wine Estates
Treasury Wine Estates is one of the world’s largest wine companies. The company goes back to the establishment of the Lindeman’s Vineyard in the Hunter Valley, New South Wales in 1843.
TWE brands include Penfolds Grange, Wolf Bass, Yellowglen, Wynns Coonawarra Estate, Rosemount Estate, Rawson’s Retreat and Lindeman’s.
In 2014, TWE rejected a takeover bid from US-based investment firm, Kohlberg Kravis Roberts & Co. L.P. (KKR). KKR revised its bid later in 2014, but did not end up proceeding with its offer.
Dairy alternative drinks, such as soy and almond milk, accounted for 6 per cent of total global dair...
There are some serious lessons to be learnt for businesses in the food industry when examining a uni...
Kellogg’s is opening its first permanent café in New York City.
ASX-listed dairy company, Australian Natural Proteins, is partnering with a Fijian family to start p...
Chinese consumer markets for Western-style cakes and cake mixes are still in their infancy, yet earl...
Following a ketogenic diet may help people live longer and have better memory two studies have found...
Demand for dairy snacks in Asia is higher than the global average demand new research data has revea...
Two Freedom Foods products have been named finalists in the 2018 World Innovation Awards.