Half Year 2026 Treasury Wine Estates Ltd Earnings Call Transcript
Key Points
- Treasury Wine Estates Ltd (TSRYF) reported EBITS of $236 million, slightly ahead of the guidance range provided in December.
- Penfolds brand showed strong depletions growth in China and the US outside of California, indicating positive underlying business performance.
- The company has taken decisive actions to maintain brand strength and reduce parallel import activity, particularly in China.
- Treasury Wine Estates Ltd (TSRYF) has initiated a multi-year transformation program, TWE Ascent, aimed at delivering $100 million in cost savings over two to three years.
- The company reached a settlement agreement with RNDC, providing clarity to its route to market in the US and plans to partner with Reyes Beverage Group in six states.
- Treasury Wine Estates Ltd (TSRYF) reported a statutory NPAT loss of $649.4 million, primarily due to a non-cash impairment of US assets.
- The company suspended its FY26 interim dividend as a temporary measure to reduce balance sheet gearing.
- NSR per case fell by 5%, impacted by reduced ultra-luxury sales in Penfolds and actions to reduce parallel imports in China.
- EBITS margin decreased by 7 percentage points to 18.2%, driven by changes in sales mix and higher operating costs.
- The US luxury wine market faced disruptions, particularly in California, affecting Treasury Americas' performance.
Thank you for standing by and welcome to the Treasury Wine Estates, TWE FY26 half year results briefing. (Operator Instructions) I would now like to hand the conference over to Sam Fischer, Chief Executive Officer and Managing Director. Please go ahead.
Thank you operator, and good morning, and thank you for joining Treasury Wine Estates' 2026 interim results briefing. Joining me on the call today is Stuart Boxer, our Chief Financial and Strategy Officer.
You may notice that our divisional leaders aren't on todayâs call, which is a shift in how we would like to present our results moving forward, with Stuart and I to lead this forum, while allowing the rest of the team to remain fully focused on the business and our commercial execution.
Going forward, we will of course provide opportunities for you to engage with the broader leadership team, including at our Investor Day in early June and other engagement events that our investor relations team will lead.
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