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2h ago

Treasury Wine Halts Buyback, Pulls 2026 Outlook After China, US Setbacks

Weak Penfolds sell-through in China upended expectations for a swift post-tariff rebound.

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A bottle of Penfolds Grange wine, one of the brands from the Treasury Wines group, is selected at a Sydney boutique wine store, February 15, 2016. REUTERS/Jason Reed/File Photo
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Overview

  • Treasure Wine Estates withdrew its group EBITS growth guidance for fiscal 2026 and dropped its outlook for modest growth in Treasury Americas, citing a California distributor transition that could cut about A$50 million from FY26 net sales revenue.
  • Penfolds depletion in China remains weak relative to plan, reflecting a shift away from large banquets and official guidance curbing alcohol at state functions.
  • The A$200 million on-market share buyback announced in August has been paused after roughly 15% completion, or about A$30.5 million in purchases.
  • Shares fell as much as 14% to their lowest level since September 2015 following the announcement.
  • Treasury is reallocating product to selected markets to lessen China exposure and reduce parallel import risks as incoming CEO Sam Fischer prepares to take over later this month.