Analysis

Focus - Treasury Wine Estate's H1 performance by region and brand

Most popular

Coca-Cola alcohol launch a statement of intent

Coca-Cola reaps rewards of CEO's innovation bet

Interview - Beam Suntory CEO Albert Baladi

Why are spirits brands still getting women wrong?

Why 'Quality Control' is the name of the beer game

MORE

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.

//i4.aroq.com/1/twe.jpg

Regions

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.

Brands

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.


Related Content

Treasury Wine Estates performance trends 2014-2018 - results data

Treasury Wine Estates performance trends 2014-2018 - results data...

How did Treasury Wine Estates perform in H1 fiscal-2020? - results data - comment

How did Treasury Wine Estates perform in H1 fiscal-2020? - results data - comment...

How did Treasury Wine Estates perform in H1 fiscal-2019? - results data

How did Treasury Wine Estates perform in H1 fiscal-2019? - results data...

How did Treasury Wine Estates perform in its fiscal-2018? - results data

How did Treasury Wine Estates perform in its fiscal-2018? - results data...

Oops! This article is copy protected.

Why can’t I copy the text on this page?

The ability to copy articles is specially reserved for people who are part of a group membership.

How do I become a group member?

To find out how you and your team can copy and share articles and save money as part of a group membership call Sean Clinton on
+44 (0)1527 573 736 or complete this form..



Forgot your password?