Treasury Wine Estates announces A$64.4m profit

Posted by AFN Staff Writers on 22nd August 2011

Australian-based global winemaking and distribution business Treasury Wine Estates Limited, formerly owned by Australian brewer Foster’s Group Limited, today announced first year profits of A$64.4 million.

In its first full year report since demerging from Foster’s in May 2010, Treasury Wine Estates reports earnings that have continued to grow for the third consecutive half.

David Dearie, Chief Executive Officer of TWE said, “This is a solid result, our first since we became a standalone company in May. The ongoing strength of the Australian dollar cut reported earnings by around $30 million. However, underlying earnings momentum continued, with constant currency EBITS growth up 13.1% for the year.

“The fundamentals of the wine category are strong, driven by increasing consumption and trends in our major markets, and within all price tiers in our portfolio.

“In Australia and New Zealand, our result reflects further significant improvements in the way we do business, from sharper focus on our brands, continued supply improvements, better sales and marketing capability, and improved partnering. Pro forma EBITS increased 14.5%.”

Mr Dearie said that above average rainfall throughout much of South Eastern Australia resulted in the most challenging vintage conditions the company has experienced in many years and significantly reduced the availability of quality fruit.