Treasury Wine Estates flags heavy pandemic hit, updates on Penfolds demerger

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Treasury Wine Estates flags heavy pandemic hit, updates on Penfolds demerger
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Penfolds maker Treasury Wine Estates expects to report a 21 per cent slump in its earnings for 2020 due to the impact of the coronavirus | sdanck

Penfolds maker Treasury Wine Estates has announced a swingeing downgrade, saying it expects to report a 21 per cent slump in its earnings for 2020 due to the impact of the coronavirus.

Treasury said it was still investigating a potential demerger of its successful Penfolds brand by the end of the 2021 calendar year.After previously issuing guidance of earnings before interest tax and and the agricultural accounting standard SGARA growth in 2020 of between 5 per cent and 10 per cent, Treasury said it now expects it to fall up to 21 per cent to between $530 million and $540 million.

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