Focus - Treasury Wine Estate's H1 performance by region and brand
Treasury Wine Estates has had a tough H1. Here's a closer look at the company's performance
Earlier today (28 February), Treasury Wine Estates posted a marked fall in profits for its fiscal half-year, with sales in the six-month period dipping by 3.3%. Here, just-drinks takes a closer look at the company's performance in the six-month period by region and brand.
In the Americas, volumes slipped by 1.4% to 8.1m cases. Profits before interest and tax and one-off items (EBITS) was down by 2% on a constant currency basis. The cost of goods sold rose by 3.3% per case, while "luxury" volumes fell by 15% due to "supply constraints".
In Europe, Middle East and Africa, volumes fell by 9.2% to 3.4m cases due to the exit from "unprofitable sales" in the UK, and "softer trading conditions" in Continental Europe and the Nordic countries. First-half were flat on a constant currency basis.
In Australia & New Zealand, volumes were flat, down by 0.8% at 4.4m cases. New Zealand volumes fell by 18.3% as Treasury withdrew from some "unprofitable price points" and reallocated supply-constrained wines to alternate markets. Australian volumes were up by 1%, despite " a challenging first-quarter trading environment". EBITS tumbled by 25.5% on a constant currency basis due to higher COGS.
Asia provided a bright spot, with volumes climbing by 11%, albeit from a small base. EBITS leapt by 12.5%, coming in at AUD13.5m.
Treasury suffered from higher COGS in the half-year due to its "deliberate decision" in 2011 that it would "purchase quality grapes" to satisfy consumer demand.
The Lindeman’s and Rosemount brands, along with the company's so-called "masstige" (mass prestige) Wolf Blass brands delivered growth in selected markets and key channels.
In the Americas, Rosemount saw its volumes increase by 9.1%.
Wolf Blass delivered a 5.9% volumes lift in Europe, Middle East and Africa.
Lindeman's posted an increase of 2% in volumes in the Americas.
Beringer Classics and Lindeman’s out-performed their respective categories during the first half, Treasury said.
- Will Tequila Learn from Scotch Whisky's Mistakes?
- Comment - How to Target Cognac's Mok Generation?
- Is Marketing Twisting the Meanings of Words?
- Analysis - The Value of Prosecco
- Sustainability - Walking the Walk on Water
- Whyte & Mackay takes on Flor de Caña in UK
- SPI Group US, Canada sales chief departs
- Belvedere proposes name change
- Soaring Prosecco sales good for Champagne
- Brown-Forman eyes family ties with board additions
- Global Tequila insights - market forecasts, product innovation and consumer trends research
- Global Scotch whisky insights - market forecasts, product innovation and consumer trends research
- Global rum insights - market forecasts, product innovation and consumer trends research
- Beam Suntory Inc. - Strategy and SWOT Report
- Diageo plc (DGE) - Financial and Strategic SWOT Analysis Review