• FY net profits come in at AUD77.6m (US$57.1m) versus AUD100m loss a year earlier
  • Net sales in 12 months to end of June rise by 8.4% to AUD1.85bn
  • Operating profits (EBITS) leap by 22% to AUD225.1m
  • Volumes stay flat, up by 0.3% to 30.1m nine-litre cases
Treasury Wine Estates has had a fruitful fiscal-2015

Treasury Wine Estates has had a fruitful fiscal-2015

Treasury Wine Estates has reported a strong return to profit in its fiscal full-year, with sales in the period also moving from red to black.

The company, which had described its most recent full-year as a "reset" 14 months ago, said earlier today that net profits in the 12 months to the end of June reached AUD77.6m (US$57.1m). Sales in the period were up by 8.4%, compared to a 5.3% fall in the corresponding period a year earlier. Volumes in the 12 months came in flat.

The performance follows a first half that saw sales rise by 6% but volumes dip by 1.3%.

CEO Michael Clarke

"Fiscal 2015 was a re-set year for our company; a year where substantial strategic, operational and cultural change was embedded to enhance the quality and sustainability of TWE’s base business. The team has achieved in just 12 months, what might reasonably be expected to occur over a two to three year period.

"Our full-year result reflected the combination of portfolio premiumisation together with deliberate actions to improve the quality and strength of our earnings. Fiscal 2015 represents the first successful year of TWE’s journey to transition from being an order-taking, agricultural company to a brand-led marketing organisation."

On outlook, the company is targeting "high-teens EBITS margins" by fiscal-2020. Clarke also claimed the group has "the greatest pipeline of consumer marketing programmes in place in the company’s history". By the end of calendar-2015, he said, ten of TWE's priority brands will either be "relaunched, refreshed via outstanding innovation or promoted via exciting advertising and brand activation campaigns".

For a regional view of Treasury Wine Estates' full-year performance, click here

TWE also said that higher COGS in fiscal-2016 and -2017, "driven by adverse vintage and production costs", are expected to be offset by supply chain optimisation initiatives.

The company's share price leapt following the results: At the close they were up by 13.4% at AUD6.25.

Find out how Treasury Wine Estates turned around its business in Asia

To read the company's official statement, click here. Treasury's results presentation can be found here.