Big winegrape grower and winemaker, Treasury Wine Estates (TWE), has more than doubled its first half net profit posting an after tax result of 136.2 million.
The former wine marketing division of Fosters and now name behind brands like Penfolds, Wolf Blass and Wynns has attributed part of its good result to earnings flowing from its purchase of Diageo’s wine assets in the US in 2015-16.
Treasury achieved earnings per share (EPS) of 18.5 cents.
“All regions delivered double digit EBITS growth and importantly, growth was delivered sustainably,” said chief executive officer, Michael Clarke.
“I am delighted to report a strong interim 2017 financial result highlighted by further margin accretion, excellent cash conversion and outstanding EPS growth, despite the higher share base.”
“The result announcement demonstrates we are executing on all the initiatives we have communicated to the market and importantly, that TWE is continuing to deliver sustainable value to its shareholders”.
TWE’s Asian market profits have jumped 16-fold in the past three years, but the US business is now the largest profit centre in its stable following the $754m Diageo purchase.
Mr Clarke is now set to base himself part-time in the US, in California.
He said if the company made another large acquisition he would seriously contemplate permanently shifting Treasury's head office to the US.
But for now the company would stay headquartered in Melbourne.
TWE has 9000 hectares of Australian and New Zealand vineyards based on the Barossa and Coonawarra regions in South Australia and Marlborough on NZ’s South Island, plus 4000ha in California.
Andrew Marshall
Andrew Marshall is the group agribusiness writer for ACM's state agricultural weeklies and websites. He is a former editor at The Land and has worked in various Rural Press group roles in Canberra, North Richmond (NSW) and Toowoomba (Qld).
Andrew Marshall is the group agribusiness writer for ACM's state agricultural weeklies and websites. He is a former editor at The Land and has worked in various Rural Press group roles in Canberra, North Richmond (NSW) and Toowoomba (Qld).
