Treasury Wine Estates share price has slipped 20% after the group revised its earnings outlook for the financial year.
As reported by just-drinks earlier today (30 January), the Penfolds producer issued a statement to the Australian Stock Exchange saying it expects first-half profits to come in around 20% down on the prior year. The Victoria-headquartered group also lowered its full-year profits forecast.
At the end of trading today in Sydney, TWE’s stock finished down by 20% at AUD3.64.
The group blamed its first-half performance on price increases across some of its commercial portfolio in Australia, along with less promotional initiatives and “significant competitive activity”. It also flagged that the impact from the Chinese Government’s anti-extravagance crackdown has “intensified”.
The company’s shares also took a significant hit last July after it announced plans to destroy old and out-of-date stock in the US, resulting in a AUD160m (US$145.7m) writedown.
TWE is due to report its half-year figures on 20 February.
US Tariffs are shifting - will you react or anticipate?
Don’t let policy changes catch you off guard. Stay proactive with real-time data and expert analysis.
By GlobalData
