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3h ago

Treasury Wine Pulls 2026 Guidance, Pauses Buyback as China, U.S. Jolt Outlook

Weak China demand alongside U.S. distribution turmoil undermined investor confidence.

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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

  • The company suspended its A$200 million on‑market buyback after completing roughly A$30 million.
  • Group EBITS guidance for fiscal 2026 was withdrawn, along with Penfolds targets for low‑ to mid‑double‑digit growth in FY26 and 15% in FY27.
  • Penfolds depletions in China trailed plans, with shifts toward smaller occasions and fewer official banquets weighing on premium wine demand.
  • A California distributor change from RNDC to Breakthru Beverage Group is expected to cut sales by about A$50 million, with talks continuing over roughly A$100 million of RNDC‑held inventory.
  • Treasury is reallocating product to select markets to mitigate China weakness while preparing for a CEO handover to Sam Fischer on October 27.