Full Year 2026 Treasury Wine Estates Ltd Earnings Call Transcript
Key Points
- F26 EBITS of $492 million exceeded guidance, driven by strong Penfolds performance in Q4.
- Penfolds continues to deliver strong depletions growth, particularly in China and other Asian markets.
- US depletions returned to growth nationally in F26, with strong momentum in H2, led by brands like DAOU and Frank Family Vineyards.
- The Ascent transformation program is on track, with $100 million in annual cost savings expected by F29 and $40 million in F27.
- The company is making progress on reducing customer inventory and parallel imports in China, with inventory rebalancing ahead of expectations.
- Statutory NPAT was a loss of $1.1 million due to a $1.3 billion non-cash impairment of US assets.
- EBITS margin declined to 19% due to lower NSR per case and higher costs of doing business.
- Leverage increased to 2.8 times, with dividends suspended to prioritize deleveraging.
- The Americas business faces significant headwinds in F27, with EBITS expected to decline to approximately $50 million due to inventory rebalancing and portfolio declines.
- The company continues to battle parallel import activity in China, requiring ongoing vigilance and corrective actions.
Thank you for standing by and welcome to the Treasury Wine Estates FY26 full year results. (Operator Instructions)
I would now like to hand the conference over to Mr. Sam Fischer, Managing Director and Chief Executive Officer. Please go ahead.
Good morning and thank you for joining Treasury Wine Estates' 2026 full-year results briefing. Joining me on the call today is Justin Pipito, our Interim Chief Financial Officer.
As Justin and I and other members of our team shared with you in some detail at our recent Investor Day, in F26, we took decisive action to ensure the health of our brands and channels and commenced our comprehensive ascent transformation program focused on reshaping TWE for future success. While this decisive action has impacted financial performance in the short-term, I'm confident we'll emerge a more focused and financially strong company capable of sustained attractive returns.
And you can see this story of these actions reflected
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