AUSTRALIA – Treasury Wine Estates (TWE), Australia’s largest wine producer, has reported a 13 percent increase in full-year earnings for 2024, driven primarily by strong performances from its luxury Penfolds brand and Treasury Americas arm.
The group’s earnings before interest and tax (EBIT) rose 12.8 percent to US$658.1 million, reflecting robust growth in its luxury portfolio and successful integration of newly acquired assets.
The group’s luxury net sales revenue (NSR) surged 29.6 percent, surpassing US$1 billion in NSR for both Penfolds and Treasury Americas for the first time.
This achievement underscores the growing consumer demand for high-end wines and TWE’s ability to execute its strategic priorities effectively.
A significant contributor to this success was the recent acquisition of Californian wine operation DAOU Vineyards.
DAOU delivered second-half earnings of US$24.7 million, in line with the company’s guidance. Integration of the business is currently underway, with synergies of over US$20 million expected by the end of the 2026 financial year.
“Our fiscal 2024 performance reflects the excellent momentum we continue to build behind our luxury brand portfolios in Penfolds and Treasury Americas,” said TWE Chief Executive Tim Ford.
“These two outstanding luxury wine platforms have very clear strategic direction and execution priorities, and we have great confidence in both as strong drivers of long-term growth for Treasury Wine Estates.”
Despite the overall earnings growth, TWE’s net profit fell by 61 percent to US$98.9 million due to non-cash impairment charges associated with the divestment of lower-end labels, including Wolf Blass, Yellowglen, Lindeman’s, and Blossom Hill.
These brands accounted for less than 5 percent of the company’s gross profit.
Looking ahead, TWE announced plans to create a Global Premium division by July 1, 2025.
This new division will merge Treasury Premium Brands with Treasury Americas premium brands and will include popular labels such as 19 Crimes, Squealing Pig, Matua, and Pepperjack.
The Penfolds brand saw a 15.5 percent increase in earnings to US$421.3 million, with sales growing 22.1 percent to US$1 billion, aided by the re-establishment of the brand in China after the lifting of tariffs by the Chinese government in April.
Treasury Americas also experienced strong growth, with earnings up 13.1 percent to US$230.5 million.
For 2025, TWE anticipates earnings to be between US$780 million and US$810 million, driven by continued growth in its luxury portfolio and stability across its global brand portfolios.
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