CEO Tim Ford says the business has “genuine momentum” and consumers will keep buying high-end wine even with price increases.
Profits in the Penfolds division dropped 7.8 per cent to $319.3 million, but earnings outside of China jumped 25 per cent on a constant currency basis as Mr Ford steadily diverts sales into other countries including Thailand, Malaysia and Singapore.
Treasury Wines shares jumped 3.7 per cent to $13.10 late on Thursday, a one-year high. They were above $19 in September 2019 in the months before the pandemic began, and well before China slapped the heavy tariffs on Australian wine in November 2020.The company said Asian sales of Penfolds outside of China more than doubled. Importantly, margins at Penfolds inched ahead by 0.6 of a percentage point to 44.5 per cent. But overall, sales of Penfolds across all of Asia fell 18.
The Treasury Americas business lifted earnings by 20.5 per cent to $185.6 million, bolstered by the $434 millionThe 19 Crimes brand, which hasas its figurehead, is making strong gains and is about to release in September a new wine featuring him on the label. It is called Cali Gold and is a sparkling wine.
The Treasury Premium Brands arm, which sells wines including Pepperjack, Wynns and Wolf Blass, lifted earnings by 27 per cent to $79.6 million. The company also announced on Thursday it had acquired for $60 million the Chateau Lanessan winery in Bordeaux in France to bolster volumes in its Penfolds-made French wine portfolio.MST Marquee analyst Craig Woolford said the company would “benefit from price rises over the next 12 months” and also have the plus of flat grape costs. He has a 12-month price target of $13.70 on the stock.Mr Ford has not given up on the China market in the long-term, despite the tariffs.
Australia Latest News, Australia Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Treasury lifts dividend, Penfolds sales outside China rise 106pcPenfolds owner Treasury Wine Estates managed to lift full-year net profit by 5.3 per cent and pay out a higher final dividend of 16¢ per share final dividend, up from 13¢.
Read more »
Treasury lifts dividend, Penfolds sales outside China rise 106pcPenfolds owner Treasury Wine Estates managed to lift full-year net profit by 5.3 per cent and pay out a higher final dividend of 16¢ per share final dividend, up from 13¢.
Read more »
Brad Pitt foundation agrees on $20.5m settlement to owners of faulty post-Katrina housesLawsuit was brought by owners after Pitt’s supposedly sustainable, flood-proof homes were plagued by mold, leaks and rot
Read more »
Brad Pitt foundation agrees on $20.5m settlement to owners of faulty post-Katrina housesLawsuit was brought by owners after Pitt’s supposedly sustainable, flood-proof homes were plagued by mold, leaks and rot
Read more »
Santos surges to record half-year profit on higher oil and gas pricesThe Australian energy giant has reported a huge lift in half-year profit as it continues to prosper from oil and gas prices driven higher by Russia’s invasion of Ukraine. | NickToscano1
Read more »
Santos surges to record half-year profit on higher oil and gas pricesThe Australian energy giant has reported a huge lift in half-year profit as it continues to prosper from oil and gas prices driven higher by Russia’s invasion of Ukraine.
Read more »