Overview
- Treasury Wine reported underlying net profit of A$275.3 million and a full-year statutory loss of about A$1.08 billion after taking roughly A$1.73 billion in charges.
- The company booked a A$1.12 billion impairment on U.S. assets and a A$611.3 million charge tied to an Americas strategic review and U.S. supply‑chain rebalancing because of excess inventory and weak demand in the United States.
- Americas performance weakened sharply with EBITS down 61.4% and net sales falling about 21%, prompting the board to launch a multi-year overhaul of that division.
- Management will cut the brand portfolio from around 70 to 30, reorganize into four regional divisions from October, and expects workforce impacts affecting about 2,700 staff as it focuses investment on luxury and high-potential labels.
- Penfolds stood out as a resilient luxury asset and will be a core focus, while the company and industry plan further supply adjustments such as vineyard removals and wine destruction to rebalance long-term inventory and pricing.