AUS: Treasury Wine Estates sees FY losses after 'challenging' year
- FY net losses of AUD100.9m (US$93.5m)
- Net sales slip 5.3% to AUD1.7bn
- Operating profits (EBITS) fall 24.6% to 184.6m
- Volumes slide 6.4% to 30m nine-litre cases
- In-depth look at results available here
Treasury Wine Estates has reported FY net losses after a tough year
Treasury Wine Estates has reported full-year net losses of AUD100.9m (US$93.5m) and a slide in sales after what it called a “challenging” year.
The Melbourne-headquartered wine group went into the red in the 12 months to the end of June, following profits of AUD47.2m in the previous financial year. The group reported an impairment charge of AUD260m (US$243.6m) in June.
Prior to that, in May, CEO Michael Clarke said the company was looking to cut around 5% of its workforce.
Today, Clarke said: "Having taken the necessary steps in the final quarter of fiscal 2014 to drive improved performance, including increasing consumer marketing, reducing TWE’s cost base and addressing structural challenges within the business, I am confident the company is now positioned for future success.”
TWE is currently the subject of an apparent bidding war between private equity firms Kohlberg Kravis Roberts & Co (KKR) and an unspecified bidder, reported to be TPG.
For a drill-down into the results by region, click here.
Coverage of TWE's post-results conference call can be found here.
Treasury Wine Estates Ltd in Wine (World)
Treasury Wine Estates has faced serious challenges since its spin-off from Foster’s Group in 2011. The US, which was a key component of its turnaround plan, has thus far failed to pay dividends. In 20...read more
Treasury Wine Estates has faced serious challenges since its spin-off from Foster’s Group in 2011. The US, which was a key component of its turnaround plan, has thus far failed to pay dividends. In 20...
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