Treasury Wine Estates (ASX: $TWE) Full Year 2024 Results Announcement

Treasury Wine Estates (ASX: $TWE) has reported a strong performance for the full year 2024, with EBITS increasing by 12.8% to $658.1 million, driven by robust growth in the Luxury portfolio. The Group's Luxury NSR saw a significant increase of 29.6%, reflecting outstanding execution and strong consumer demand for Luxury wine in key markets. The company also announced the re-establishment of Penfolds Australian COO portfolio in China, which is on track with strong shipment demand and initial depletions meeting expectations. Additionally, the acquisition of DAOU contributed to the strong performance, with EBITS of US$24.7 million in the second half of 2024, in line with guidance. Looking ahead, TWE expects F25 EBITS to be in the range of $780-810 million, reflecting continued strong luxury portfolio growth in Penfolds and Treasury Americas, with stability expected across the remainder of TWE's global brand portfolio.

Executive Commentary on Full Year 2024 Results

Our fiscal 2024 performance reflects the excellent momentum we continue to build behind our Luxury brand portfolios in Penfolds and Treasury Americas, which now represent over 75% of Group EBITS. These two outstanding Luxury wine platforms have very clear strategic direction and execution priorities, and we have great confidence in both as strong drivers of long-term growth for Treasury Wine Estates. In relation to our Premium brands, we are focused on improving the performance of this global portfolio to deliver greater value to TWE overall, with implementing key changes to enable the evolution to the new Global Premium division a key focus through F25.

Outlook and Future Ambitions

Looking ahead, TWE aims to create a Global Premium division by 1 July 2025 through the combination of Treasury Premium Brands and Treasury Americas Premium portfolio brands, and seek to divest its Commercial brand portfolio. The company expects F25 EBITS to be in the range of $780-810 million, reflecting continued strong top-line Luxury portfolio growth in Penfolds and Treasury Americas, with stability expected across the remainder of TWE's global brand portfolios. TWE also provided insights into the future, with Penfolds targeting low double-digit EBITS growth in F25, and aiming for annual EBITS growth of approximately 15% in F26 and F27. Additionally, the acquisition of DAOU is expected to be EPS accretive and mid to high single digit EPS accretive in F25, the first full year of ownership. The company also highlighted its strategic focus on re-establishing the Penfolds Australian COO portfolio in China and the business integration of DAOU, with material production and overhead cost synergies of US$20m+ on track to be realized by the end of F26.