just The Preview – Treasury Wine Estates’ Q4 & FY

Treasury Wine Estates (TWE) will release it full-year results on Thursday. Here, just-drinks takes a look at the Australia-headquartered wine group’s news in the 12 months to the end of June, a period that included takeover speculation culminating in potential bids this month from private equity groups. 

• In July last year, TWE announced plans to destroy its old and out-of-date stock in the US, resulting in a AUD160m (US$145.7m) write-down. 
• In September, the firm confirmed the departure of its CEO, David Dearie. It said the write-down played a key part in its decision.
• The write-down also led to the prospect of a lawsuit from shareholders unhappy with the firm’s business behaviour in the US.
• At the end of January, TWE halted trading in its shares ahead of issuing a profits warning for the fiscal year. The company told investors EBITS (earnings before interest, tax and SGARA and material items) in the six months to the end of December would come in 20% down on the previous year.
• Three weeks later, TWE announced a new CEO, former Coca-Cola Co, Kraft Foods and Premier Foods executive Michael Clarke. The appointment didn’t go down well with everyone.
• In May, Clarke said he may cut up to 5% of TWE’s workforce as part of a cost-cutting plan.
• The following month, the CEO announced a AUD260m (US$243.6m) write-down along with a raft of structural changes intended to change TWE’s focus on to its premium wine brands.

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